China had a $150 billion overall current account surplus in 2005. Assuming that Chinas net debt forgiveness

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China had a $150 billion overall current account surplus in 2005. Assuming that China’s net debt forgiveness was zero in 2005 (its capital account balance was zero), what can you specifically conclude about the relationship of Chinese purchases of financial and real assets abroad versus foreign purchases of Chinese financial and real assets? Explain.

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Macroeconomics

ISBN: 9781108458856

17th Edition

Authors: Campbell McConnell, Stanley Brue

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