If the Chinese government purchases an additional $10 million worth of U.S.government bonds,this transaction is recorded as a _____ in the U.S.balance of payments.

Question

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When the Chinese government purchases U.S. government bonds, it is considered a financial inflow to the United States, which is recorded as a credit in the capital account of the U.S. balance of payments. This reflects the borrowing or inflow of capital from abroad.

If the Chinese Government Purchases an Additional $10 Million Worth