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Erika, Who Lives in Hungary, Buys Hershey's Chocolate for $20

Question 55

Multiple Choice

Erika, who lives in Hungary, buys Hershey's chocolate for $20. At the same time, Matt buys Turkish delights from Turkey for $20. Which of the following statements describes the effect these transactions have on the U.S. balance of trade and payments?


A) Net exports and net capital outflow are both zero.
B) Net exports and net capital outflow both equal $20.
C) Net exports are zero and net capital outflow equals $20.
D) Net exports equal $20 and net capital outflow is zero.

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