Multiple Choice
If a French company sells 1000 gallons of Perrier to a U.S.company at 5 euros per gallon,and uses the money to buy stock in a Spanish cork company,how does this affect the French balance of payments accounts?
A) Decrease in financial account; increase in merchandise trade
B) Decrease in merchandise trade; increase in financial account
C) Decrease in net investment income from abroad; increase in financial account
D) Decrease in merchandise trade; increase in net income from abroad
Correct Answer:
Verified
Correct Answer:
Verified
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