We may use the diagram below (Figure 2, panel (a)) to assess whether trade deficits are bad. Use the diagram to explain whether (or when) trade deficits are bad.
We may use the diagram below (Figure 2, panel (a)) to assess whether trade deficits are bad. Use the diagram to explain whether (or when) trade deficits are bad.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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We may use the diagram below (Figure 2, panel (a)) to assess whether

Transcribed Image Text:(a) National Saving and Domestic Investment (as a percentage of GDP)
FIGURE 2
Percent
National Saving,
of GDP
Domestic Investment,
and Net Capital
22 -
Domestic investment
Outflow
20 -
Panel (a) shows
national saving and
domestic investment
18 -
as a percentage of
GDP.
16
Source: U.S. Department of Commerce.
14 -
National saving
12 -
10
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
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