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If a Japanese Company Sells 200 VCRs to a French

Question 12

Multiple Choice

If a Japanese company sells 200 VCRs to a French company and uses the money to buy U.S.government bonds,the Japanese merchandise trade balance ________,and the Japanese capital and financial account balance ________.


A) rises; rises
B) rises; falls
C) falls; falls
D) falls; rises

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