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Question

8473 ? deploymentld 57535524351130859213206798eSBN-97813370966078id-32 https://ng MINDTAP Problems & Applications (Ch 18) Back to Assignment Attempts: 0 Keep the Highest: 0.5/1 2. Problems and Applications 92 Indicate whether each of the following transactions represents an increase in net exports, a or a decrease in net capital outflow for the Unted States decrease in net exports, an increase in net capital outfow, Net Exports Net Capital Outflow Increase Decrease Increase Decrease The Sony pension fund buys a bond from the U.S. Treasury. A South Korean tourist buys some Sunkist oranges from an American farmer.C An American buys a box of Belgium chocolate. An American fashion company opens up an outlet in the U.k Continae wthout saving Type here to search 5 6 8

Explanation / Answer

In the first case foreigners are buying domestic assets so net capital outflow decreases

In the second case foreigners are buying domestic goods so net exports increase

In the thid case an american is buying foreign good so net exports decrease

In last case domestic consumers are buying foreign assets so net capital outflow increases.

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