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Canada Sells Machinery to a South African Company, Which Pays

Question 45

Multiple Choice

Canada sells machinery to a South African company, which pays Canada with South African currency (the rand) . What happens to Canadian net capital outflow from this transaction?


A) It increases because Canada acquires foreign assets.
B) It decreases because Canada acquires foreign assets.
C) It increases because Canada sells capital goods.
D) It decreases because Canada sells capital goods.

Correct Answer:

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