A USfirm Exchanges Dollars for Yen and Then Uses Them to to Buy

question 92

Multiple Choice

A U.S.firm exchanges dollars for yen and then uses them to buy Japanese goods.Overall as a result of these transactions

• A)both U.S.net capital outflow and U.S.net exports rise.
• B)both U.S.net capital outflow and U.S.net exports fall.
• C)U.S.net capital outflow rises and U.S.net exports fall.
• D)U.S.net capital outflow falls and U.S.net exports rise.

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