When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ______ and there is a capital ______ to/from the United States.

Question

Quizplus · Accepted Answer

The U.S. imports increase because the restaurant buys French wine, and there is a capital inflow because the French company uses the proceeds to buy U.S. government debt.

When a US Restaurant Purchases French Wine and the French Wine Company