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From the U.S standpoint, a capital outflow will occur when a Japanese investor buys a portion...

From the U.S standpoint, a capital outflow will occur when a Japanese investor buys a portion of the US government debt.

True or false ?

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Answer #1

False . When a foreign country buys US assets then it is a case of capital inflow. US government debt are securities which can be used as assets and can be sold to bring in capital. So from US view point it is capital inflow

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