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:
Verified
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