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A U. S. firm buys apples from New Zealand with New Zealand dollars it got in exchange for U. S. dollars. New Zealand residents then use these dollars to purchase oranges from the U. S. Which of the following increases?
A. New Zealandâs net capital outflow and New Zealandâs net exports
B. only New Zealandâs net exports
C. only New Zealandâs net capital outflow
D. neither New Zealandâs net exports nor New Zealandâs capital outflow
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Answers: 1
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A U. S. firm buys apples from New Zealand with New Zealand dollars it got in exchange for U. S. doll...
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