Question: Java Hut, a US coffee retailer, buys $10 million worth of coffee beans from Colombia. It also pays $5 million for paper cups and utilities,
Java Hut, a US coffee retailer, buys $10 million worth of coffee beans from Colombia. It also pays $5 million for paper cups and utilities, all produced in the U.S. It sells the coffee it produces using the above inputs to U.S. consumers for $50 million. In general, how do these expenses affect net exports? How do these expenses affect American consumption?
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