An American pharmacy buys drugs from a Canadian company and pays for them with American dollars. What are the effects of this transaction?
A) It increases American net exports and increases Canadian capital outflow.
B) It increases American net exports and decreases Canadian capital outflow.
C) It decreases American net exports and increases Canadian capital outflow.
D) It decreases American net exports and decreases Canadian capital outflow.
Correct Answer:
Verified
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