Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increas

Question

1 month ago

12

Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increas

e in net capital outflow, or a decrease in net capital outflow for the United States. Transaction Net Exports Net Capital Outflow Increase Decrease Increase Decrease The Sony pension fund buys a bond from the U.S. Treasury. A South Korean tourist buys some Sunkist oranges from an American farmer. An American buys a Toyota. An American buys a share of Sony stock.

Business

1 answer:

Mariulka [3.8K] · Answer 1 · 2026-04-02T21:24:42+03:00

Answer:

A. Reduction in net capital outflow

B. Increase in net exports

C. Reduction in net exports.

D. Increase in net capital outflow.

Explanation:

A. When the Sony pension fund purchases U.S. treasury securities, capital flows into the country, thus leading to a decrease in net capital outflow.

B. When a South Korean tourist buys Sunkist oranges from an American farmer, this raises U.S. exports, leading to an increase in net exports.

C. If an American buys a Toyota, it results in higher imports for the United States, contributing to a decrease in net exports.

D. When a U.S. resident purchases shares of Sony stock, it results in capital exiting the country, which heightens net capital outflow.