A citizen of Saudi Arabia uses previously obtained U.S.dollars to purchase apples from the United States.This transaction

Question

Quizplus · Accepted Answer

When a citizen of Saudi Arabia uses previously obtained U.S. dollars to purchase apples from the United States, it is considered a capital outflow from Saudi Arabia, as the money is leaving their country. However, since the U.S. is receiving the money, it is considered a net export for the U.S. Therefore, the transaction decreases Saudi net capital outflow and increases U.S. net exports.

A Citizen of Saudi Arabia Uses Previously Obtained U