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A US Company Uses Pound Sterlings It Already Owned to Purchase

Question 151

Multiple Choice

A U.S. company uses pound sterlings it already owned to purchase bonds issued by a company in Germany. Which of these countries has an increase in net capital outflow?


A) Germany and the U.S.
B) Germany but not the U.S.
C) The U.S.but not Germany
D) Neither Germany nor the U.S.

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