Q: Future U.S. deficits could be decreased by Question 36 options: decreasing current and…
A: Below are the two reasons for the government deficit: *Excess government spending. *Low rate of…
Q: If the trade deficit of the United States increases, how is the current account balance affected?
A: Balance of payment refers to the record of the international transactions that the domestic country…
Q: What is meant by current account deficit and current account surplus? State their significance
A: A balance of payment account is a record of international transactions of an economy over a…
Q: Find the current account balance when the trade balance are 2,81,000 and the invisible balance are…
A: Generally in the given question Trade balance are given as = 281000 Invisible balance = 391000…
Q: Future U.S. deficits could be decreased
A: Fiscal deficit means that government's expenditure is more than it's revenue. Future U.S. deficits…
Q: Why is a nation with a current account deficit a borrower at that point in time?
A: Current account includes all those transactions (in monetary terms) which occur due to the movement…
Q: Describe two measures that can used by the government to correct a deficit on the current account of…
A: Balance of payment: The balance of payments is a database of all foreign trade and financial…
Q: How does devaluation (lowering the exchange rate) help cure current account deficit in the economy?
A: Devaluation refers to the situation where domestic country reduces the value of its currency against…
Q: Why could a current account deficit stimulate an economy? List at least two reasons and explain with…
A: Current account deficit The current account deficit is a situation in the economy of a country…
Q: Japan has run large current account surpluses for much of the past two decades, yet no one ever asks…
A: Balance of trade of a country denotes the imports and exports of the country.
Q: We often hear that trade deficits are bad for a country. Should we agree or disagree with this…
A: Trade deficit is a situation which arises when the imports of the country exceeds its exports that…
Q: Explain the causes of current account deficit, and how CAD is affecting the economy of Pakistan?
A: A deficit of CA {current account} is described as a measurement of trade that states that a nation…
Q: In the open macroeconomy framework a 'balance of payments deficit' implies that ...
A: An economy is said to be an open economy if it can trade with other countries, i.e., it can import…
Q: country with current account deficit indicates a sign of weakness while a country with current…
A: Actually, current account deficits are not in every case terrible, and nor are current account…
Q: What is current account deficit? List down, with detailed explanations, what causes current account…
A: Current Account forms a part of a country's Balance of Payments (BOP). It includes trade in goods…
Q: Given that a country has a large and possibly unsustainable current account deficit, explain how you…
A: We'll answer the first 3 sub parts as no particular sub part has been mentioned. Current account…
Q: The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require…
A: Trade Deficit: The term trade deficit refers to the situation where the country's import is more…
Q: Which government policy measure would be most likely to reduce a current account deficit and…
A: A current account deficit occurs when a country's export is lower than a country's import.
Q: Discuss the implications of a persistent current account deficit for an open economy like Pakistan…
A: A current account deficit is a trade indicator that indicates a country's imports of goods,…
Q: Jamaica's current account averaged US$-65.94M from 1987 until 2020, reaching an all-time high of…
A: Balance of payment: The balance of payments (BOP), is an account consisted of, a summary of all…
Q: Explain and illustrate with a diagram how a country’s current account deficit might cause a change…
A: A change in the currency account deficit affects a currency's value. Here let's take when the…
Q: Given that the country has a floating exchange rate regime, what are the consequences of a policy…
A: As a result of expansionary monetary policy, the LM shifts rightwards and the output and interest…
Q: A current account deficit is generally a result of: a large amount of U.S. purchases of…
A: Current account deficit:The current account deficit refers the measures of a country's trade where…
Q: WHICH OF THE FOLLOWING IS NOT A GENUINE CONCERN ABOUT THE ISSUE OF RISING INTERNATIONAL PUBLIC DEBT?…
A: When talking about international public debt, it can be said that government of different countries…
Q: In the short run, all of the following are disadvantages of a fixed exchange rate regime except:
A: In the short run, fixed exchange create both advantage and disadvantage to the economy.
Q: In the Keynesian balance of payments model A. The trade balance is not affected by income changes.…
A: Answer: In the Keynesian balance of payments, model import is positively related to income. A rise…
Q: The current account balance is equivalent to an excess of domestic expenditure (C + I+ G) over gross…
A: Balance of payment refers to the record of the international transactions that the domestic country…
Q: Explain the relationship between the current account balance given by exports (X) minus imports (M)…
A: Note:- Dear learner you have asked multiple questions, as per our policy we have solved only first…
Q: Show, using algebra, that the current account balance is: (i) the difference between saving and…
A: Current account balance is actually under the balance of payment theory. Now this account measures…
Q: In the two-period SOE model, if the real interest rate decreases and the current account is…
A: Real interest rate is the nominal interest rate adjusted for inflation. It represents the increase…
Q: 5 List the types of policies that can lead to a current account deficit
A: Answer to the question is as follows:
Q: Describe three means by which a current account deficit in a developing country is financed. (By…
A: Concept Current account deficit is measuring a country's commerce in which Its imports outnumber its…
Q: How and why will switching from a flexible to fixed exchange rate regime affect exports as a…
A: It is the rate at which one country's currency may be exchanged for another. For example, if one…
Are current account deficits necessarily undesirable? Provide a brief justification.
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- Japan has run large current account surpluses for much of the past two decades, yet no one ever asks if these surpluses are sustainable. Why are surpluses treated differently than deficits?Which government policy measure would be most likely to reduce a current account deficit and unemployment? Pick a,b,c, or d A. Decrease in income tax B. Increase in corporation tax C.Increase in the rate of interest D. Devaluation“A country with current account deficit indicates a sign of weakness while a country with current account surplus indicates a sign of strength in terms of economic growth” Do you agree with the above statement? Justify your answer.
- What is current account deficit? List down, with detailed explanations, what causes current account deficit in the economy.How does devaluation (lowering the exchange rate) help cure current account deficit in the economy?Future U.S. deficits could be decreased by options: increasing transfer payments and decreasing interest payments on the debt increasing government expenditures and decreasing taxes decreasing current and future taxes decreasing government expenditures and increasing taxes
- In the Keynesian balance of payments model A. The trade balance is not affected by income changes. B. An increase in income will increase exports. C. An increase in income will increase imports. D. An increase in income will increase the trade balance. E. An increase in income will increase both imports and exports.A current account deficit is generally a result of: a large amount of U.S. purchases of foreign real estate. U.S. purchases of bonds issued by foreign corporations. imports exceeding exports. exports exceeding imports.Is trade deficit always a problem? Support your answer with proper reasoning.