An American farm equipment dealer sells dollars to obtain euros. It then uses the euros to buy farm equipment from a German company. This exchange
A) increases U.S. net capital outflow because Germans obtain U.S. assets.
B) decreases U.S. net capital outflow because Germans obtain U.S. assets.
C) increases U.S. net capital outflow because the U.S. buys capital goods.
D) decreases U.S. net capital outflow because the U.S. buys capital goods.
Correct Answer:
Verified
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