Question

If sales of Saudi Arabian oil to the rest of the world increase and Saudis use the proceeds to buy foreign goods, which of the following increases 

a) Saudi Arabian net exports but not Saudi Arabian net capital outflow 

b) Saudi Arabian net capital outflow but not Saudi Arabian net exports 

c) both Saudi Arabian net exports and net capital outflow 

d) neither Saudi Arabian net exports nor net capital outflow

Answer 1

Ans) the correct option is d) neither Saudi Arabian net exports nor net capital outflow