Please define trade surplus, deficit and balance concepts. What currency strategy would you suggest to resolve a trade deficit problem? Please explain your answer with a numerical example.

Q: If the U.S. dollar appreciates and prices remain the same at home and abroad, foreign goods become…

A: Answer to the question is as follows :

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: When a country exports more goods and services than it imports, this is called Multiple Choice a…

A: Exports refer to those goods and services which are produced in one country and supplied to another.

Q: If a country imports more than it exports, it has a trade deficit. True or false

A: Balance of payments is the difference between the the value of the trade exports and imports in 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: If an economy has a widening trade deficit, which of the following monetary policy option will…

A: A trade deficit happens when there is a negative net sum or negative equilibrium in a worldwide…

Q: Using the national savings and investment identity, explain how each of the following changes…

A: The trade balance refers to the record of the exports and the imports of a country to or from other…

Q: es the Philippines suffer a trade surplus or trade deficit for 2020 and first nine months of 2021?…

A: The account that includes transaction relating to the export and import of goods and services and…

Q: How could an increase in a nation's fiscal deficit increase its trade deficit?

A: Government budget deficit affects the trade deficits. Budget deficit occurs when spending increases…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

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: Assume a U.S. firm buys (imports) $5 million (in U.S. dollars) of foreign goods. That transaction by…

A: Trade deficit refers to the situation where the import of the domestic country is greater than the…

Q: Sketch a diagram of how a budget deficit causes a trade deficit. (Hint: Begin with what will happen…

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

Q: Is trade deficit always a problem? Support your answer with proper reasoning

A: No, trade deficit is not always a bad thing. A country which runs a trade deficit in general imports…

Q: Discuss how nations use expenditure-changing policies and expenditure-switching policies to achieve…

A: In this situation:- since the 1930s, nations have actively pursued internal balance as a primary…

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: Explain what a debt crisis is and how it can trigger a balance of payments crisis

A: Debt Crisis is a state in which a country is not able to return the government debt. When the…

Q: EXPLAIN IN DETAIL GENERAL ASPECTS OF BALANCE OF TRADE.

A: The Balance of trade (BOT) can be defined as the difference between the value of a country's imports…

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: 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: Should imports to the United States be curtailed by, say 20 percent to eliminate our trade deficit?…

A: The balance of trade refers to exporting and importing and, hence, evaluating the overall economic…

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: 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: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: According to economic theory, fast-growing countries should be running trade deficits countries…

A: A good trade balance is critical to a country's economy's long-term viability. And a country's…

Q: In the balance of payments, a current account deficit is balanced by a capital account surplus. True

A: Balance of payments (BOP) is a record of transactions made between residents of a country and the…

Q: Compare and contrast changes in the value of the US Dollar on the trade deficit

A: The trade deficit is a situation where the imports a goods and services of a nation exceeds the…

Q: Explain the challenge of a trade deficit on an economy

A: The trade deficit is the amount by which the value of import of a country exceeds the value of…

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: 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…