Suppose Canada sells goose down parkas to the United States. What are the effects of this transaction?
A) U.S. net exports increase, and U.S. net capital outflow increases.
B) U.S. net exports increase, and U.S. net capital outflow decreases.
C) U.S. net exports decrease, and U.S. net capital outflow increases.
D) U.S. net exports decrease, and U.S. net capital outflow decreases.
Correct Answer:
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