If Bob in Texas Buys Bonbons Made in France for $25

question 10

Multiple Choice

If Bob in Texas buys bonbons made in France for $25, and the French chocolatier buys stock in IBM for $25, then the French net exports:

• A) and net capital outflow are both zero.
• B) and net capital outflow both equal $25.
• C) is zero and net capital outflow is $25.
• D) equals $25 and net capital outflow is zero.