Suppose an American citizen purchases a TV from Sony a Japanese company) . Sony then uses the dollars to purchases U.S. Treasury bonds. How will this transaction enter into the U.S. balance of payments?
A) The current account will decrease; the capital account will increase.
B) The current account will decrease; the capital account will decrease.
C) The current account will increase; the capital account will increase.
D) The current account will increase; the capital account will decrease.
E) There will be no net change in the current account or capital account.
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