Suppose that General Motors (a U.S. corporation) pays dividends to its foreign shareholders, and foreign shareholders use these payments to buy more G.M. shares. This transaction

Select one:

increases the US current account and increases US external wealth.

reduces the US current account and increases US external wealth.

reduces the US current account and leaves US external wealth unchanged.

increases the US current account and reduces US external wealth.

reduces the US current account and reduces US external wealth.