Everything else equal,when U.S.exports ________,net capital outflows ________.

Question

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When U.S. exports increase, it means that foreigners are buying more American-made goods and services, which in turn means they need to pay for those goods and services using U.S. dollars. This increases the demand for U.S. dollars in the foreign exchange market, causing the value of the dollar to appreciate relative to other currencies. As a result, Americans will find it more expensive to buy foreign goods, reducing the demand for foreign assets and increasing their investment at home. This will lead to an increase in net capital outflows.

Everything Else Equal,when U.S.exports ________,Net Capital Outflows ________

Everything Else Equal,when U.S.exports ,Net Capital Outflows