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A USFirm Buys Wool from Australia with U

Question 152

Multiple Choice

A U.S.firm buys wool from Australia with U.S.currency.The Australia firm then uses this money to buy electric shears from a U.S.firm.Which of the following increases?


A) Australian net capital outflow and Australian net exports
B) only Australian net exports
C) only Australian net capital outflow
D) neither Australian net exports nor Australian capital outflow

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