**Balance-of-Trade Deficit Comparison: A Question****Question:**In 2014, the United States' balance-of-trade deficit with China was about 10 times as large as the balance-of-trade deficit with Canada. a. True b. False**Explanation:**The balance-of-trade deficit is the difference in value between a country's imports and exports. A large deficit indicates that a country is importing more than it is exporting. The comparison in this question highlights the substantial difference in the trade deficits the United States had with China and Canada in 2014.**Note:**There's no graph or diagram included in this question. It is a multiple-choice format that tests knowledge on the balance-of-trade deficit data for the United States with China and Canada for the specified year.

When talking about IS trade relationship with other countries, it can be said that Has has some…

Answered: In 2014, the United States'…

In 2014, the United States' balance-of-trade deficit with China was about 10 times as large as the balance-of-trade deficit with Canada. O a. True O b. False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Determine hich account of the Balance-of-Payments is affected the following transaction: A local…

A: Hello, thank you for the question. Since there are multiple questions asked here, only the first…

Q: Which of the following is NOT a pro of having a fixed exchange rate policy? O a. Anchors…

A: Under a fixed exchange rate policy, the exchange rate is fixed, and the central bank intervenes in…

Q: What problem is most directly associated with a trade deficit? O fixed exchange rates. O devaluation…

A: Introduction Trade deficit is said to take place when the imports done by a country exceed that of…

Q: Which of the following statement is incorrect? O Most of the answers are correct. Diversifying…

A: Option "a" that "Most of the answers are correct" is incorrect because two of the option are…

Q: The cha pter notes that the rise in the U.S. tradede ficit during the I 980s was due largely to…

A: Exchange rate: It refers to the rate under which the different economies exchange their goods and…

Q: Nigeria has a positive trade balance of $10 billion. If it has a negative balance of services of $8…

A: Balance of trade is otherwise called net export, trade balance, or global trade balance.

Q: A pro-savings policy by the US would likely reduce the US trade deficit.

A: Answer: True, There is a negative relationship between saving rates and trade balances of a country.…

Q: When the capital inflow to a country is greater than the capital outflow, then the country has a…

A: When the capital inflow to a country is greater than the capital outflow then the country has a…

Q: Think of a two-period lived small open economy that takes the world interest rate of 5% as given. It…

A: Given, Rate of interest (r) = 5% Current wealth (W1)= 100 million Trade deficit in first period =…

Q: Please explain on how you get the Y

A: GDP refers to the total value of finished goods and services that produced within the economic…

Q: When there are large federal budget deficits, the trade deficit tends to shrink. a. True O b. False

Q: If Canada's current account is in deficit, then there is a on the capital account, which means a…

A: The answer is - b. Surplus, inflow to Hence, If Canada's current account is in deficit, then there…

Q: Explain why temporary and permanent fiscal expansions do not have different effects under fixed…

A: A.Fiscal expansion policy revolves around increased investment by the government into the economy.…

Q: 1. A fundamental problem in international economics is how to produce a world government that can…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: According to the national savings and investment identity, if the government of the country of Apex…

A: A budget is a document prepared by the government that includes a list of all the revenue streams…

Q: If a government of a country with a zero trade balance increases its budget deficit, then what will…

A: Import/export imbalances can be a decent or a terrible sign for an economy, and exchange excesses…

Q: Critical Thinking: Let's make it as realistic as possible to the US. In 2020, the US had both a…

A: The circular flow of income, also known as the circular flow, is an economic model in which major…

Q: The current account balance consists of Onet exports of goods and services, minus net unilateral…

A: Current account records all the transactions that involves and exports. It also includes primary and…

Q: ional Commercial Bank, a local company, pays US$1 million in dividends ect one: a. Capital Account -…

A: The BOP incorporates the current record, which essentially gauges the progressions of labor and…

Q: According to David Hume’s theory of automatic price adjustment, countries experiencing current…

A: The theory of how trade balances can be rectified is known as the price specie flow mechanism. The…

Q: What are some of the pros and cons of expansions and contractions in consumption in a country when…

A: Countries that are more open to foreign commerce tend to grow quicker, innovate, enhance…

Q: The following Figure 1 is an edited version of an image discussed during the course. Use it to…

A: Balance of Payment Balance of Payment is a statement of a country that shows the Inflow and Outflow…

Q: If the economy booms in the United States while going into recession in other countries, the U.S.…

A: The trade balance is the difference between the export and import. The trade deficit occurs when…

Q: If Australia has a current account deficit, then: Select one: O a. both B and C apply. O b. we must…

A: A current account is an account that records all of the transactions that occur in relation to the…

Q: Consider an economy that begins with both internal and external balance. What would happen if the…

A: It would develop an excessively large current account deficit with excessive unemployment. This is…

Q: Suppose the country of Questville imports $8488 worth of goods and services and exports $9742 worth…

A: A country's balance of trade is the total value of goods exported minus the total value of goods…

Q: Why does a balence of payments defict for the United States heve a different effect on its…

A: Balance Of Payments: It is an accounting statement which shows itemwise receipts and expenditure of…

Q: QUESTION 3 Ifa country runs a negative net capital outflow, this implies that OA there is a capital…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: When there is political instability in another country, the United States can expect O an increase…

A: The political instability is when the government collapse due to any circumstance or not functioning…

Q: The balance of trade show a deficit of $5000 and the value of imports are $9000what is the value of…

A: Balance of trade =$ -5000 value of imports =$9000 value of export is to be calculated

Q: In the Islam (2021) article, "Yuan-Dollar Real Exchange Rate and the U.S. Real Trade Deficit with…

A: The choice of Associate in Nursing charge per unit system and therefore the rate at that interchange…

Q: 1) Large current account deficits imply large financial account surpluses. True Or False?Explain. ww

A: Hi! Thank you for the question but we can only answer one question at a time or up to three parts of…

Q: he nation of Narnia had a current account deficitof $423 million and a nonreservefinancial account…

A: Answer a) Current account deficit is $423 millionNon-reserve financial account surplus is $360…

Q: If a country runs a deficit in its current account, it has to be financed by running a capital…

A: Current account includes the export, import, unilateral transfer payments, investment incomes. The…

Q: Suppose that an economy is experiencing large trade deficits. According to pass-through effects, a…

A: Pass-through effects refer to the extent to which the effects of a change in exchange rate are…

Q: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…

A: The balance of trade of a country is known as the difference between the value of the country's…

Q: The United States has a current account deficit equal to about 3.5 percent of GDP. Suppose that the…

A: Gross Domestic Product (GDP) is defined as the final value of all goods and services produced during…

Q: ge that lower exchange rates rom other countries to acoept this natior's currency for payment mly…

A: The value of one country's currency in relation to another country's or economic zone's currency is…

Q: Suppose we are in Balance of Payment equilibrium with a trade deficit of 300. What happens to the…

A: Selling of securities recorded under the capital account. IT does not affect the trade deficit.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

According to the Marshall-Lerner condition, when a country's currency depreciates in real terms its trade balance will improve if Your answer: O elasticity of demand for exports = 0.9; elasticity of demand for imports = -0.4 O elasticity of demand for exports = -0.8; elasticity of demand for imports = -0.3 O elasticity of demand for exports = 0.5; elasticity of demand for imports =- 0.2 O elasticity of demand for exports = 0.3; elasticity of demand for imports = -0.5
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.
Please anwer it
Please state why it’s wrong or uncertain if applicable
A6 describe the changes of current, capital, and financial account balances. Is the deficit of current account financed by the surplus of capital and financial accounts for that country? Or is an opposite pattern found in a specific time period? Do you observe the inverse relationship between current and capital/financial account balances for these countries?
Answer and Breif explantion
2
Today, most economists view trade deficits as O needing legislated quotas to correct O needing legislated tariffs to correct O needing legislated exchange rate adjustments to correct O needing no legislation because they are largely self-correcting
II. Trade Accounts. A. The Balance on Goods and Services has been in deficit for years. Assume the U.S. has $400 of goods and services exports. Use a simple flow of trade diagram to illustrate a U.S. Balance on Goods and Services deficit of $50. Foreign. U.S. B. I have argued that the illustration above is incomplete because it requires foreigners to hold American dollars for years and years. This seems unlikely. Use another flow of trade diagram to show how a deficit in the Balance of Goods and Services can be offset somewhere else in the trade accounts. U.S. Foreign. C. A Canadian furniture maker with plants in Canada and the United States, sells $100,000 worth of furniture made in Canada to Americans. They use the money from the sale to purchase $100,000 worth of furniture quality lumber from American suppliers to be used in their Canadian plant. How do these two transactions affect the Balance on Goods and Services? Give a number D. A Canadian furniture maker with plants in…
help me with parts A,B,C AND explain please
Other things equal, if the United States continually runs trade deficits, foreigners will own U.S. assets. a. More and more. b. Less and less. c. The same amount of.
An editorial in the Wall Street Journal in 2017 makes the following observation: "When the US has a current-account deficit it has to have a capital-account surplus of the same amount." Source: "How to Think About the Trade Deficit," Wall Street Journal, March 10, 2017. Briefly explain whether you agree with this observation OA Agree, because the United States must have a capital account surplus of the same size B. Disagree, because the observation confuses the capital account with the financial account OC. Disagree, because the current account and the capital account are unrelated OD. Disagree, because the United States must have a capital account deficit of the same size.