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Citizens in India Buy Music from the U

Question 115

Multiple Choice

Citizens in India buy music from the U.S.To do so they use Indian rupees to purchase U.S.dollars.If U.S.citizens hold these rupees rather than spending them,what happens to U.S.net exports and U.S.net capital outflows?


A) both U.S.net exports and U.S.net capital outflow rise
B) both U.S.net exports and U.S.net capital outflow fall
C) U.S.net exports rise and U.S.net capital outflow fall
D) U.S.net exports fall and U.S.net capital outflow rise

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