If a U.S.shirt maker purchases cotton from Egypt,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

When the U.S. shirt maker purchases cotton from Egypt, it is an import, which decreases U.S. net exports. To pay for the cotton, the U.S. might need to send capital abroad, decreasing net capital outflow.

If a USShirt Maker Purchases Cotton from Egypt,U