A Canadian firm buys sardines from Morocco and pays for them with Canadian dollars. Which of the following correctly identifies the effects of this transaction?
A) Canadian net exports increase, and Canadian net capital outflow increases.
B) Canadian net exports increase, and Canadian net capital outflow decreases.
C) Canadian net exports decrease, and Canadian net capital outflow increases.
D) Canadian net exports decrease, and Canadian net capital outflow decreases.
Correct Answer:
Verified
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