Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors, such as autos. Explain why this is not true.

Q: A Senator announces his past support for protectionism. “The U.S. trade deficit must be reduced, but…

A: When the value of total imports of the economy is substrates from the total value of the exports of…

Q: The balance of trade shows a deficit of $200 million. With the value of exports being $300 million,…

A: The nations around the world tend to interact with other nations, and get involved in international…

Q: Why are budget deficits and trade deficits sometimescalled the twin deficits?

A: A budget deficit is a situation that is faced by the government when its total spendings exceed the…

Q: In which of the following circumstances should a small open economy run a trade deficit? Select all…

A: An economy that's hospitable trade and to flows of capital across its borders which is little…

Q: How big is the trade deficit relative to overall GDP?

A: The gross domestic product (GDP) is a standard measure of the value added created by the production…

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: large tax cut in the United States should lead to an increase in the trade deficit. True Fals

A:

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: Evaluate how a growing trade deficit influences the US economy

A: The difference between exports and imports of goods and services in an economy is called the trade…

Q: Which of the following will increase the trade deficit of the US? a. The US dollar depreciating in…

A: A trade deficit occurs when the country has more imports rather than exports and this will result in…

Q: How does a growing trade deficit affect a country's GDP?  Explain your answer.

A: GDP refers to the final value of goods and services produced in an economy during a year. The GDP is…

Q: the US trade deficit is made possible, in part, because of foreigners' demand for US financial…

A: The trade deficit reflects the fact that foreigners want to invest in America, so they sell us goods…

Q: Define each of the following terms: c. Trade deficit; devaluation; revaluation

A: Trade deficit: Trade deficit can be defined as a situation where country's import exceeds its…

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: Just a couple of years after the economic crisis, Spain managed to reduce their trade deficit, was…

A: Spain applied a policy of depreciating the value of its currency, this makes the prices of goods…

Q: In 2001, 2002, and 2003, Congress passed the series of tax cuts that President Bush had requested.…

A: The increased consumer spending due to the tax cuts leads the country towards a larger trade…

Q: For a small, open economy when spending exceeds production then I. This country will run a trade…

A: Solution: For a small, open economy when spending exceeds production then a) This country will run a…

Q: How a devaluation may reduce the trade deficit of a country? What condition is required to reduce…

A: Devaluation is the fall in the value of a country's currency. As a result of fall in exchange rate,…

Q: A government official announces a new policy. Thecountry wishes to eliminate its trade deficit, but…

A: The situation that depicts where imports of a country tend to exceed exports of a country is known…

Q: What will happen to the US trade deficit if the US is in a recession while our trading partners are…

A: Trade deficit happens when the country’s export fell and import rises, it means the situation where…

Q: How can the United States improve trade deficit? Give three solutions.

A:

Q: Please answer What are some of the major developments in trade over the past two decades? What are…

A: Economic development is basically the process of improving a nation's, region's, local community's,…

Q: In an economy open to trade, must a government budget deficit always be accompanied by an external…

A: An open economy is when that allows its citizens to make purchase or sale of goods and services to…

Q: Define the term TRADE DEFICIT

A: According to the given question Deficit in simple word we can say that when the level of the amount…

Q: Suppose the US goes into a recession where the economy is not growing very quickly (or is actually…

A: A trade deficit occurs when the US imports more products and services than it exports. When a…

Q: Suppose we are in Balance of Payment equilibrium with a trade deficit of 300. What happens to the…

A: Selling of securities recorded under the capital account. IT does not affect the trade deficit.

Q: Under what conditions will a larger budget deficit cause a trade deficit?

A: Budget deficit occurs when the government expenditure exceeds the government revenue. Trade deficit…

Q: Why does a recession cause a trade deficit to increase?

A: A recession is a situation that curbs the economy and follows a downturn to the economic growth and…

Q: trade deficits and a negative current account balance

A: When the TB ( trade balance) is in deficit then domestic investment increase domestic saving,…

Q: We may use the diagram below (Figure 2, panel (a)) to assess whether trade deficits are bad. Use the…

A: Trade deficit refers to the value of import of goods and services exceeds the value of export of…

Q: Consumers and a fresh round of stimulus money pushed demand for U.S. imported goods to a record high…

A: The foreign trade gap of a country refers to the situation when a country's exports are less than…

Q: 5   List the types of policies that can lead to a current account deficit

A: Answer to the question is as follows:

Q: If US is expected to have 12 billion dollars more export and 8 billion dollars less import. How will…

A: Here, given information is: Increase in exports: 12 billion Decrease in imports: 8 billion To…