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What is the balance of payments? Explain how s trade surplus in China with the US leads to a net capital outflow of investment from

  1. What is the balance of payments? Explain how s trade surplus in China with the US leads to a net capital outflow of investment from China to the US? Using the international macroeconomic model, show the model and describe the relation between output, spending, savings investment, trade balances, government budgets and capital investment across trading nations?

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