If Rhoda in Hungary buys taffy from Matt in Maine for $20,and Matt buys stock in his favorite goulash restaurant in Hungary for $20,then the U.S.:

Question

Quizplus · Accepted Answer

The transaction between Rhoda and Matt results in an export of $20 worth of taffy from the U.S. and an import of $20 worth of stock into the U.S., balancing each other out. Thus, both net exports and net capital outflow are zero.

If Rhoda in Hungary Buys Taffy from Matt in Maine