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

Q: Suppose that in the country of Mistania, investment spending increases from $1740 to $1940. There is…

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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: Which policy measure is most likely to be effective in reducing a balance of trade deficit? Pick…

A: This situation is also referred as negative trade balance.

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: 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: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,…

A: Trade deficit refers to a situation in which the value of imports of goods and services of a nation…

Q: The great country of Naboombu has private savings of $700 billion, investment of $800 billion, tax…

A: Government surplus refers to the money left with the government after carrying out developmental…

Q: How does a country’s debt-repayment obligation affect its ability to produce its food for its…

A: Debt repayment is the process of paying off the debts in one or a single payment.

Q: Assume that in 2010, a country had a GDP of $500$⁢500 billion, a budget deficit of $6$⁢6 billion,…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: What are some reasons to think that America is obligated to help poor countries? What are some…

A: When an economy opens up, it makes various exchanges with the rest of the world in terms of trade or…

Q: Explain the BOP deficit shortly? When a nation is suffering a BOP deficit, what does it need to…

A: Balance of payment is the summary of all the transactions of the nations with the rest of the world…

Q: Critical Thinking: Let's make it as realistic as possible to the US. In 2020, the US had both a…

A: The circular flow of income, also known as the circular flow, is an economic model in which major…

Q: Why is the bilateral trade deficit between 2 countries a bad measure of whether those countries…

A: The balance of trade is a metric that tracks the movement of exports and imports through time. A…

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: private domestic savings = $1220, the trade deficit = $90. Find private %3D %3D

A: Gross private domestic investment, or GPDI, is a measure of the amount of money that domestic…

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: (a) Define the concept of trade deficit and specify the relationship between the trade balance and…

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Q: Explain the expansionary fiscal policy in the short run and long run (ignoring exchange rate and…

A: Fiscal policy that intends to raise the aggregate demand is termed as expansionary. It can be done…

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: 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: In 2010, the economy of Minitown exported $1800 worth of goods and services and imported $1550 worth…

A: The balance of trade or the trade balance is the difference between the value of exports and the…

Q: Has trade deficit impacted the U.S. economic growth?

A: In international trade, different countries of the world import and export goods and services from…

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 is the relationship between India's fiscal policies and its current account?

A: Fiscal policy refers to the policy of the government regarding the public expenditure, taxation and…

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: Is America obligated to help low-income countries? Is foreign aid worsening America's budget…

A: Economic growth, the method by that a nation's wealth will increase over time. though the term is…

Q: Discuss the strategy to tackle debt problem of any countries?

A: Debt is when one party borrows something from another, most commonly money. Many businesses and…

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: Explain how current account and budget deficit (twin deficit) are related so that changes in one are…

A: The current account is the record of a country's imports (M) and exports of goods and services,…

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: What is the difference between foreign sales revenues and foreign purchase expenses called? A)…

A: The term 'foreign' is used to define other countries than the home country. It includes any country…

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: (a) Distinguish between a government deficit and trade deficit?

A: Deficit occurs when you receive is less amount as compared to the amount you have spent. Government…

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: 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: What is the difference between a government deficit and a trade deficit ?

A: Trade deficit occurs in an economy when the imports exceed the exports in the country. The country…

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…

Q: Explain how current account and budget deficit (twin deficit) are related so that changes in one are…

A: The current account is the record of a country's imports (M) and exports of goods and services,…