When a U.S. oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from the sale to buy transportation services from the U.S., U.S. net exports ________ and the capital inflow to the United States ________.
A. are negative; is negative
B. are unchanged; is unchanged
C. are negative; is positive
D. are positive; is negative
Answer: B
Economics
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A) inflation B) output C) real interest rate D) all of the above E) none of the above
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