A U.S. textbook publishing company sells texts to Canadian students. What are the effects of these sales?
A) U.S. net exports increase, and U.S. net capital outflow increases.
B) U.S. net exports increase, and U.S. net capital outflow decreases.
C) U.S. net exports decrease, and U.S. net capital outflow increases.
D) U.S. net exports decrease, and U.S. net capital outflow decreases.

Question

Quizplus · Accepted Answer

The sale of textbooks to Canadian students is considered an export by the U.S. This means that U.S. net exports increase. However, since the U.S. is receiving payment for these exports, U.S. net capital outflow also increases.

A US Textbook Publishing Company Sells Texts to Canadian Students