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?

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter4: The Aggregate Economy
Section: Chapter Questions
Problem 5E
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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?
Transcribed Image Text: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?
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