Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 14

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.