Solved

An American Hardware Chain Sells Dollars to Obtain Indian Rupees

Question 159

Multiple Choice

An American hardware chain sells dollars to obtain Indian rupees. It then uses the rupees to buy electrical generators manufactured by an Indian firm. This exchange


A) increases U.S. net capital outflow because Indians obtain U.S. assets.
B) decreases U.S. net capital outflow because Indians obtain U.S. assets.
C) increases U.S. net capital outflow because the U.S. buys capital goods.
D) decreases U.S. net capital outflow because the U.S. buys capital goods.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents