A U.S.firm buys sardines from Morocco and pays for them with U.S.dollars.Other things the same,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 a U.S. firm buys sardines from Morocco, it is an import, which decreases U.S. net exports. The payment in U.S. dollars to Morocco means capital is flowing out of the U.S., decreasing net capital outflow.

A USfirm Buys Sardines from Morocco and Pays for Them with with U.S.dollars.Other