EBK MICROECONOMICS
21st Edition
ISBN: 8220103960151
Author: McConnell
Publisher: YUZU
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Chapter 27, Problem 10RQ
To determine
The impact of the continuous trade deficit of the US.
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Students have asked these similar questions
Assume a U.S. firm buys (imports) $5 million (in U.S. dollars) of foreign goods. That transaction by itself increasesthe trade deficit by $5 million. But, the $5 million will flow back to the United States to purchase either (i) U.S. goodsand services or (ii) U.S. assets.• How does the way the $5 million comes back to the United States determine whether there will be balancedtrade or a trade deficit?• How does the U.S. economy benefit from either transaction (the foreign purchase of U.S. goods and services[exports] or the purchase of U.S. assets)?
If Canadian exports of goods and services were $37 billion, imports of goods and services were $42 billion, transfers by Canadians to foreigners were $3 billion and
transfers from foreigners to Canadian citizens were $2 billion, then the current account balance would be
O A. $4 billion.
O B. - $6 billion.
O C. $8 billion
O D. $6 billion.
O E. - $4 billion.
2
3.
4
O
The balance of trade equals exports minus imports.
O
Since the inception of NAFTA, U.S. exports to Mexico have grown from $50 billion to $221 billion, while imports from Mexico have risen from $49 billion to $270 billion.
During that same period, U.S. exports to Canada have grown from $114 billion to $287 billion, while imports from Canada have risen from $128 billion to $317 billion.
Select two trends from the list below that have resulted from the NAFTA agreements:
a. Canada's balance of trade with the U.S. has increased.
b. Mexico's balance trade with the US has decreased.
c. Mexico's balance of trade with the U.S. has increased.
d. Net trade between United States and Canada has not changed.
e. Net trade between United States and Mexico has not changed.
Canada's balance f trade with the US has decreased
Chapter 27 Solutions
EBK MICROECONOMICS
Ch. 27.1 - Prob. 1QQCh. 27.1 - Prob. 2QQCh. 27.1 - Prob. 3QQCh. 27.1 - Prob. 4QQCh. 27.A - Prob. 1ADQCh. 27.A - Prob. 1ARQCh. 27.A - Prob. 1APCh. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQ
Ch. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQCh. 27 - Prob. 11DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5P
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