4. Net capital outow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these markets, me following identity must remain h-ue: Net Capital OutowNet Capital Outow = = Ne: ExporisNet Exports In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will help you understand why this identity must hold. Suppose you own a toy store in Canada, where there is high demand for the PIayNah'on 3, a video game console. Because of this, you spend $15,000 to increase your inventory of the gaming system, which is manufactured by Zony, a Japanese company, in Japan. Determine the e'ects of this transaction on exports, imports, and net exports in the Canadian economy, and ente your results in the foimwing tabie. If the direction of change is \"No change, " enter "0" in the Magnitude of Change column. Hint: The magnitude of change should always be positive, regardless of the direction of change. Magnitude of Change Direction of Change (Dollar's) Exports E Imports E Net Exports E Because of the identity equation that relates to net exports, the in Canadian net exports is matched by in Canadian net capital outow. Which of the following is an example of how Canada might be affected in this scenario? Check ai.f that apply. [:1 Zony exchanges the $15,000 for yen at the local bank, which then uses the dollars to purchase Canadian bonds. [3 Zony purchases $15,000 worth of stock in a Canadian company. E] Zony purchases $15,000 worth of Canadian bonds