A Canadian computer maker sells computers to a Czech Republic firm. This company uses all of the revenues from this sale to purchase stock in a Czech Republic company. What happens to Canadian net exports and net foreign investment due to these transactions?
A) They will increase both Canadian net exports and Canadian net foreign investment.
B) They will decrease both Canadian net exports and Canadian net foreign investment.
C) They will increase Canadian net exports and will decrease Canadian net foreign investment.
D) They will decrease Canadian net exports and will increase Canadian net foreign investment.
Correct Answer:
Verified
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