A Japanese bank buys bonds sold by Minnesota Manufacturing.Minnesota Manufacturing then uses these funds to buy machinery from Canada.Which of the following decreases?
A) U.S.net exports but not US net capital outflow
B) U.S.net capital outflow but not U.S.net exports
C) U.S.net exports and U.S.net capital outflow
D) neither U.S.net exports nor U.S.net capital outflow
Correct Answer:
Verified
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