Suppose initially Canada has all its international payments accounts in balance (no surplus or deficit). Then Canadian firms increase the amount they export to Japan, and the Japanese finance the increase by borrowing from Canada. In Canada, everything else remaining the same, there will now be a

Select one:

A.capital and financial account deficit and a current account deficit.

B.capital and financial account surplus and a current account surplus.

C.capital and financial account surplus and a current account deficit.

D.capital and financial account deficit and a current account balance.

E.capital and financial account deficit and a current account surplus.