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What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital account transaction, and whether it increases or decreases the size of the US balance of payments deficit.

Japan buys rice from the United States.

Ford Motor Company builds an automobile plant in Russia.

A German insurance company buys US government bonds.

US residents vacation in Asia.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91572438

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