If Rhoda in Hungary buys candy from Matt in Maine for $20, and Matt buys food in his favorite goulash restaurant in Hungary for $20, then the U.S. net exports:

A. is zero and net capital outflow is $20.
B. and net capital outflow both equal $20.
C. equals $20 and net capital outflow is zero.
D. and net capital outflow are both zero.


Answer: D

Economics

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