iven the following transactions between the domestic and foreign countries: I. Domestic business borrowed $35 from foreign banks II. Domestic investors sold $50 of their holdings of foreign government bonds III. Domestic investors bought $30 of foreign corporate bonds IV. Foreign investors purchased $45 of domestic government bonds What is Capital Account Balance?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented...
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Given the following transactions between the domestic and foreign countries:
 
I. Domestic business borrowed $35 from foreign banks 
II. Domestic investors sold $50 of their holdings of foreign government bonds
III. Domestic investors bought $30 of foreign corporate bonds
IV. Foreign investors purchased $45 of domestic government bonds 
 
What is Capital Account Balance?
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