The trade surplus in 1980 was roughly zero. Compute the average ratio of investment to GDP and the average value of the trade balance as a percent of GDP in three periods: 1980-1989, 1990-1999, 2000-2009 and 2010 to the latest point. Would it appear that trade deficits have been used to finance investment?
The trade surplus in 1980 was roughly zero. Compute the average ratio of investment to GDP and the average value of the trade balance as a percent of GDP in three periods: 1980-1989, 1990-1999, 2000-2009 and 2010 to the latest point. Would it appear that trade deficits have been used to finance investment?
Chapter4: The Aggregate Economy
Section: Chapter Questions
Problem 5E
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