Canada sells machinery to a South African company, which pays Canada with

South African currency (the rand). What happens to Canadian net capital outflow

from this transaction?

a.

It increases because Canada

acquires foreign assets.

b.

It decreases because Canada

acquires foreign assets.

c.

It increases because Canada sells

capital goods.

d.

It decreases because Canada sells

capital goods.

ANS:

A

PTS:

1

DIF:

Average

REF:

p. 280

BLM:

Higher Order

NOT:

Macro TB_12-60