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When a United States Oil Company Purchases Oil from Saudi

Question 28

Multiple Choice

When a United States oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from its sale of oil to the United States to buy US government debt, US _____ and there is a capital _____ to/from the United States.


A) imports increase; outflow
B) imports decrease; inflow
C) imports increase; inflow
D) exports increase; outflow

Correct Answer:

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