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

A

Economics

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