Question: China had a $372 billion overall current account surplus in 2007. Assuming that Chinas net debt; forgiveness was zero in 2007 (its capital account balance

China had a $372 billion overall current account surplus in 2007. Assuming that China’s net debt; forgiveness was zero in 2007 (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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