trade deficits and a negative current account balance

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: 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: 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: 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: 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: Which of the following measures would best rectify a deficit on a country's Balance of Payments…

A: Deficit on a country's balance of payments refers to when the imports of a country is greater than…

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: 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: 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: 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, with the aid of a graph, what will happen to the rand/dollar exchange rate and the…

A: The nations around the world tend to get involved in trade with each other, where the nations sale,…

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: A Current account deficit often raises the opposition of protectionists who think that a current…

A: There are other points of disagreement, including the definition of a current account deficit or…

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: 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: A point to the left of the balance of payments schedule (BP curve) would represent

A: Balance of Payment is a statement in which all the financial transactions made in a certain period…

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: Comparison of Global Current Account surpluses (green and blue bars) and Global Current Account…

A: ANSWER   The symmetry in the chart can be described by the concept of international trade or Open…

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: Please define trade surplus, deficit and balance concepts. What currency strategy would you suggest…

A: The trade surplus is the situation in the international market which means there is less import…

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: 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: What is the meaning of a surplus (deficit) on the current account balance? What economic…

A: Current Account Balance A balance of payment is a statement that records all the transactions of a…

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: In relation to a country's economy, the more a country imports and the worse the current account…

A: Current account:- it is a record of a country's transactions of goods and services, net earnings on…

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: The United States has been able to run international trade deficits, year after year, because

A: Increase in percentage of population that has attended colleges means increase in the general…

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…

Q: a.    Does the Philippines suffer a trade surplus or trade deficit for 2020 and first nine months of…

A: The trade balance is calculated by subtracting the value of exporting goods from the value of…

Q: For each of the following, explain the effect on a) current account OR capital account b) balance of…

A: National income is the total amount of money that is earned in a country. National Income = C + I+ G…