The balance of trade shows a deficit of $200 million. With the value of exports being $300 million, what should be the value of imports?

Q: Why does the decline in value of a certain currency cause imports to be expensive and exports…

A: Demand-pull inflation/demand-side inflation arises when the aggregate demand (AD) rises faster than…

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: 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: In a country, private savings equals 600, the government budget surplus equals 200, and the trade…

A: We are given private savings as 600, government budget surplus as 200 and trade surplus as 100.…

Q: If a country has a trade deficit, what will occur?Choose one answer.a. Imports will exceed exports.…

A: International trade is the trade that takes place beyond the national boundary. Exports refer to the…

Q: Is it possible for countries to achieve internal and external balance in their economies

A: The economies can experience the internal and external balance if they work according to the…

Q: Detail What is unfavorable balance of trade ?

A: The difference between export and import of the country determines whether the trade is favourable…

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: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

Q: Define trade surplus and trade deficit.

A: The balance of trade is referred to as the trade balance and is marked within the international…

Q: What is a trade deficit?

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

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

A:

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: Money spent on the research and development (R&D) of new products represent spending. deficit…

A: Research is defined as "creative and systematic work undertaken to increase the reservoir of…

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: 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: 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: 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: 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: 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: If the value of exports are 11,000 and the value of imports are 3000 find  the balance of trade?

A: Given information:- Imports  = 3000 Exports   = 11000    Balance of trade is difference between…

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: What is the trade deficit of United states in 2016?

A: Trade deficit is the increase in country’s imports over its exports  and causes negative balance of…

Q: What is a foreign trade deficit or surplus? How does this affectinterest rates?

A: Foreign trade refers to the trade between two or more countries and trade includes the services of…

Q: If a country is importing more than it is exporting it will have a balance of trade trade surplus…

A: Balance of trade is the difference between the total value of exports and imports.

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: 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: If a country has a trade deficit, what will occur?Choose one answer. Imports will exceed exports.…

A: If a country has a trade deficit, between the three, one will occur Imports will exceed exports.…

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: 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: Afake economy has a trade deficit of 500. imports of 800 and national savings of 2000, Investment in…

A: Given information are  Trade deficit =500 Imports M=800 and National saving S=2000

Q: Name and describe the two key components of a balance of trade. Is a persistent trade deficit a…

A: Balance of trade reflects the gap between country’s exports and imports of goods and services. With…