When a German Automaker Opens a New Plant in Alabama

When a German automaker opens a new plant in Alabama:

A) both the U.S.capital account surplus and the U.S.current account surplus increase.
B) the U.S.capital account surplus increases and the U.S.current account surplus decreases.
C) the U.S.capital account surplus decreases and the U.S.current account deficit increases.
D) both the U.S.capital account surplus and the U.S.current account surplus decrease.

Correct Answer:

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