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Suppose many factories that once made goods in the United States moved to Mexico. In order to correct the balance of payments in the United States, net exports (NX) must:

a) increase at the same time, because imports = exports.

b) decrease at the same time, because net capital outflows = net exports. WRONG

c) increase at the same time, because net capital outflows = net exports.

d) decrease at the same time, because imports = exports.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91870143

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