If a U.S.textbook publishing company sells texts overseas,U.S.net exports
A)increase,and U.S.net capital outflow increases.
B)increase,and U.S.net capital outflow decreases.
C)decrease,and U.S.net capital outflow increases.
D)decrease,and U.S.net capital outflow decreases.

Question

Quizplus · Accepted Answer

Selling textbooks overseas will generate revenue for the U.S. textbook publishing company, which will increase U.S. net exports. However, since the company is receiving payment in foreign currency, there will be an increase in U.S. net capital outflow as the company needs to exchange the foreign currency for U.S. dollars.

If a USTextbook Publishing Company Sells Texts Overseas,U