Answered: the US trade deficit is made possible,…

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the US trade deficit is made possible, in part, because of foreigners' demand for US financial assets. true false

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 2TY

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the US trade deficit is made possible, in part, because of foreigners' demand for US financial assets.

true

false

Definition Definition Situation in which a country spends more on imports than it makes through exports. When a trade deficit exists, net exports will be negative. Trade Deficit = (Imports) - (Exports)

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