Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280601
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Chapter 20, Problem 2TY
To determine
To Explain: The reason for the change in the fundamental equation.
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The United States typically has a balance-of-trade
deficit in its trade with which two countries?
North Korea
Japan
China
Iran
Turkey has run a trade deficit for almost every year during the past few decades. Which of the following is the main factor leading to this situation?
a.The Turkish lira is overvalued against foreign currencies.
b.International demand for Turkish goods and services is low.
c.Domestic demand for foreign goods and services is high.
d.National saving in Turkey is low relative to domestic investment.
Assuming that a country has a trade deficit of $50 billion, which of the following is true:
A. The country's exports are $120 billion and its imports are $180 billion
B. The country's exports are $100 billion and its exports are $150 billion
c. The country's imports are $120 billion and its exports are $180 billion
d. The country's exports are $150 billion and its imports are $100
Chapter 20 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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