Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 19, Problem 14CQ
(a)
To determine
The exports and imports of Country U’s economy with Country J and Country C.
(b)
To determine
The reason for persistent
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Students have asked these similar questions
Suppose the US goes into a recession where the economy is not growing very quickly (or is actually shrinking) while the economies of our trading partners remain strong. What will most likely happen to our trade deficit? In your answer, explain what will happen to US exports and US imports and why.
Over the past four years, the US trade deficit has
increased to $576.9 billion. Based on your
understanding of what it means to have a trade
deficit, is this number too large? Why or why not?
What are the implications for the short-term and
long-term US economy?
How do you think a fluctuation in foreign exchange rates affect trade?
Chapter 19 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- In recent decades, has the U.S. trade balance usually been in deficit, surplus, or balanced?arrow_forwardIf the trade deficit of the United States increases, how is the current account balance affected?arrow_forwardDoes a trade surplus mean an overall inflow of financial capital to an economy, or an overall outflow of financial capital? What about a trade deficit?arrow_forward
- What will happen to the US trade deficit if the US is in a recession while our trading partners are strongarrow_forwardIn the picture below is the full question. The highlighted one is my guess which is wrong. If the U. S. dollar appreciates in the foreign exchange market, what is the most likely change in the balance of trade? A)Trade deficit B)Trade surplus C)Balanced trade D)No changearrow_forwardWhat is a trade deficit, and why does it hurt us to consistently run a deficit with another country?arrow_forward
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