A German company exchanges euros for dollars from U.S. residents and then uses the dollars to buy U.S. products to sell in Germany. U.S. residents who exchanged their dollars for euros use the euros to buy bonds issued by Spanish corporations. At this point
A) both U.S. net exports and U.S. net capital outflows have risen.
B) both U.S. net exports and U.S. net capital outflow have fallen.
C) U.S. net exports have risen and U.S. net capital outflow have fallen.
D) U.S. net exports have fallen and U.S. net capital outflow have risen.
Correct Answer:
Verified
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