Suppose that U.S.citizens purchase more cars made in Korea,and Koreans purchase more bonds issued by U.S.corporations.Other things the same,these actions
A)raise both U.S.net exports and U.S.net capital outflows.
B)raise U.S.net exports and lower U.S.net capital outflows.
C)lower both U.S.net exports and U.S.net capital outflows.
D)lower U.S.net exports and raise U.S.net capital outflows.

Question

Quizplus · Accepted Answer

When U.S. citizens purchase more cars made in Korea, U.S. imports increase, which lowers U.S. net exports. When Koreans purchase more bonds issued by U.S. corporations, it increases capital inflows to the U.S., which lowers U.S. net capital outflows.

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