Macroeconomics: Private and Public Choice
15th Edition
ISBN: 9781305176799
Author: Gwartney
Publisher: Cengage
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Question
Chapter 9, Problem 14CQ
To determine
Identify the effect of inflow of capital on the trade balance.
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Under what conditions will a larger budget deficit cause a trade deficit?
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Macroeconomics: Private and Public Choice
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- In recent decades, has the U.S. trade balance usually been in deficit, surplus, or balanced?arrow_forwardDoes a trade surplus mean an overall inflow of financial capital to an economy, or an overall outflow of financial capital? What about a trade deficit?arrow_forwardWhen is a trade deficit likely to work out well for an economy? When is it likely to work out poorly?arrow_forward
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