An Indonesian flour mill buys wheat from Canada and pays for it with rupiah. What are the effects of this transaction?
A) Indonesian net exports increase, and Canadian net capital outflow increases.
B) Indonesian net exports increase, and Canadian net capital outflow decreases.
C) Indonesian net exports decrease, and Canadian net capital outflow increases.
D) Indonesian net exports decrease, and Canadian net capital outflow decreases.
Correct Answer:
Verified
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