Suppose a U

Multiple Choice

Suppose a U.S. resident buys a car from a car maker in Japan. This transaction will:

A) have a negative effect on Japan's balance of trade in merchandise.
B) have a negative effect on the U.S. balance of trade in merchandise.
C) have a positive effect on the U.S. balance of trade in merchandise.
D) bring money into the United States.
E) have no effect on Japan's balance of trade in merchandise.