Scenario: Happyland Happyland, a Country of About 48 Million People with Beautiful

Multiple Choice

Scenario: Happyland
Happyland, a country of about 48 million people with beautiful beaches, vast natural resources, and a highly skilled labor force, is encouraging foreign direct investment flows. The country has been exporting textiles, computer hardware, and software. The net result of trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.
-If Happyland is successful at attracting foreign investment, its value would appear in the country's ________.

A) capital account
B) service account
C) income payments account
D) merchandise account