The capital account balance equals foreign purchases of U.S.assets minus U.S.purchases of foreign assets.

Name: The capital account balance equals foreign purchases of U.S.assets minus U.S.purchases of foreign assets.
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This is correct. The capital account balance measures the net flow of capital between a country and the rest of the world. It is calculated as foreign purchases of U.S. assets minus U.S. purchases of foreign assets.

The Capital Account Balance Equals Foreign Purchases of U