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For each of the following transactions, explain what happens to the merchandise trade balance, current account balance, and financial account balance in both the United

For each of the following transactions, explain what happens to the merchandise trade balance, current account balance, and financial account balance in both the United States and Mexico. The exchange rate is 2 Mexican pesos per U.S. dollar.

Mexican investors buy $10 million worth of 30-year U.S. Treasury bonds.

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