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Macroeconomics Final - Part 4 of 4!
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Problem 14
Macroeconomics Final - Part 4 of 4!
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21. Open-Economy Macroeconomics / Net Exports Equal Net Foreign Investment / Problem 2
Problem 2
A US company sells \$100,000 worth of goods to a Canadian company. How does this transaction affect US net exports and net foreign investment?
A
Net exports increase by \$100,000; net foreign investment remains unchanged.
B
Net exports remain unchanged; net foreign investment increases by \$100,000.
C
Net exports increase by \$100,000; net foreign investment increases by \$100,000.
D
Net exports decrease by \$100,000; net foreign investment decreases by \$100,000.
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