EBK MACROECONOMICS
10th Edition
ISBN: 9780134896571
Author: CROUSHORE
Publisher: VST
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Question
Chapter 5, Problem 9RQ
To determine
To analyze:Effects of an increase in government budget deficit on current account balance. The amount of change in the current account balance. Connection between government budget deficit and the current account balance.
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How do government budget deficits affect the exchange rate and trade balance?
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What is current account deficit? List down, with detailed explanations, what causes current account deficit in the economy.
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