If a U.S. corporation sells a product in Europe and uses the proceeds to purchase shares in a European corporation, then U.S. net exports ______ and net capital outflows ______.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

The sale of a product in Europe increases U.S. net exports. The use of the proceeds to purchase shares in a European corporation increases net capital outflows.

If a US Corporation Sells a Product in Europe and Uses the Uses