Total points: 26 1. A Canadian firm buys apples from New Zealand with Canadian currency. The New Zealand firm then uses this money to buy packaging equipment from a Canadian firm. How do these transactions affect net exports or net capital outflow? a. They increase New Zealand net capital outflow and New Zealand net exports. b. They increase New Zealand net exports but not New Zealand net capital outflow. c. They increase New Zealand net capital outflow but not New Zealand net exports. d. They increase neither New Zealand net exports nor New Zealand capital outflow. 2. The country of Freedonia has a GDP of $4000, consumption of $1500, and government purchases of $900. What does this situation imply? a. Investment is equal to -$1600. b. Investment plus net capital outflow is equal to $1600. c. Investment plus net exports is equal to $2400. d. Saving is equal to -$2400