Question

An U.S. company buys a new industrial sewing machine from a company located in France. This would cause: Group of answer choices a decrease in U.S. next exports and increase in U.S. investment. An increase in U.S. exports and decrease in U.S. investment. A decrease in U.S. imports and increase in U.S. investment. An increase in U.S. exports and increase in U.S. investment.

Answer 1

Answer: a decrease in U.S. next exports and increase in U.S. investment

Explanation:

Net export is the measure of a country's total trade. Net exports can be calculated by subtracting the value of all goods and services a county imports from the value of the total goods and services the country exports.

When exports reduce and imports increase, then the net exports (exports ‐ imports) will reduce. Since the U.S. company buys a new industrial sewing machine from a company that is located in France, this means that the U.S net export will decrease.

The sewing machine can be used for the production of cloth. This will lead.to an increase in investment.