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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

A government official announces a new policy. The country wishes to eliminate its trade deficit, but will strongly encourage financial investment from foreign firms. Explain why such a statement is contradictory.

To determine

Can trade deficit be reduced with encouragement of funds from foreign market.

Explanation

The new policy has been announced for eliminating the trade deficit with encouragement of financial investment from foreign market by the government. This new policy is issued to eliminate trade deficit which leads to less inflow of financial capital...

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