When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ________ and there is a capital ________ the United States.

Question

Quizplus · Accepted Answer

The wine purchase by the U.S. restaurant is an import. With U.S. currency in hand, the French wine company purchase of U.S. government debt is a capital inflow to the United States.

When a US Restaurant Purchases French Wine and the French Wine Company