In 2014 Australia and China negotiated a trade agreement. This eliminated Chinese tariffs on 95% of Australian exports in return for improved access to the Australian economy for Chinese investors. How would the agreement be expected to affect the Australian balance of payments in the short run?
- Acurrent account: greater inflow; financial account: greater inflow
- Bcurrent account: greater inflow; financial account: greater outflow
- Ccurrent account: greater outflow; financial account: greater inflow
- Dcurrent account: greater outflow; financial account: greater outflow