Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 23, Problem 11SCQ
Using the national savings and Investment identity, explain how each of the following changes (ceteris paribus) will Increase or decrease the trade balance:
- A lower domestic savings rate
- The government changes from running a budget surplus to running a budget deficit
- The rate of domestic Investment surges
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Using the national savings and investment identity, explain how each of the following changes (ceteris paribus) will increase or decrease the trade balance: a. A lower domestic savings rate b. The government changes from running a budget surplus to running a budget deficit c. The rate of domestic investment surges
A country whose National Saving is greater than its Investment will experience a
Not enough information to determine trade balance.
Trade Surplus
Trade Deficit
Balanced Trade
Suppose Country X experienced a decline in the trade of manufactured goods. To account
for this, Country X had to become a borrower of foreign funds. For the next 10 years,
Country X used the borrowed funds to improve the nation's treatment plants and to develop
efficient better transit system. This created jobs in its workforce. The country began to
repay
its debt that it had borrowed. Which of the following contributed most to this
country's successful economic recovery?
the creation of a trade deficit through more aggressive buying of imports
ensuring that larger borrowing reduced the need for more private savings
O global policies of low interest rates charged on funds borrowed by governments
O ensuring borrowed funds were invested in long-term productive economic assets
Chapter 23 Solutions
Principles of Economics 2e
Ch. 23 - If foreign investors buy more U.S. stocks and...Ch. 23 - If the trade deficit of the United States...Ch. 23 - State whether each of the following events...Ch. 23 - In what way does comparing a countrys exports to...Ch. 23 - At one point Canadas GDP was 1,800 billion and its...Ch. 23 - The GDP for the United States is 18,036 billion...Ch. 23 - Why does the trade balance and the current account...Ch. 23 - State whether each of the following events...Ch. 23 - How does the bottom portion of Figure 23.3,...Ch. 23 - Explain the relationship between a current account...
Ch. 23 - Using the national savings and Investment...Ch. 23 - If a country is running a government budget...Ch. 23 - What determines the size of a countrys trade...Ch. 23 - If domestic Investment increases, and there is no...Ch. 23 - Why does a recession cause a trade deficit to...Ch. 23 - Both the United States and global economies are...Ch. 23 - For each of the following, indicate which type of...Ch. 23 - How did large trade deficits hurt the East Asian...Ch. 23 - Describe a scenario in which a trade surplus...Ch. 23 - The United States exports 14 of GDP while Germany...Ch. 23 - Explain briefly whether each of the following...Ch. 23 - If imports exceed exports, is it a trade deficit...Ch. 23 - What is included in the current account balance?Ch. 23 - In recent decades, has the U.S. trade balance...Ch. 23 - Does a trade surplus mean an overall inflow of...Ch. 23 - What are the two main sides of the national...Ch. 23 - What are the main components of the national...Ch. 23 - When is a trade deficit likely to work out well...Ch. 23 - Does a trade surplus help to guarantee strong...Ch. 23 - What three factors will determine whether a nation...Ch. 23 - What is the difference between trade deficits and...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - A government official announces a new policy. The...Ch. 23 - If a country is a big exporter, is it more exposed...Ch. 23 - If countries reduced trade barriers, would the...Ch. 23 - Is it better for your country to be an...Ch. 23 - Many think that the size of a trade deficit is due...Ch. 23 - If you observed a country with a rapidly growing...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - What is more important, a countrys current account...Ch. 23 - Will nations that are more involved in foreign...Ch. 23 - Some economists warn that the persistent trade...Ch. 23 - In 2001, the United Kingdoms economy exported...Ch. 23 - Imagine that the U.S. economy finds itself in the...Ch. 23 - Table 23.7 provides some hypothetical data on...Ch. 23 - Imagine that the economy of Germany finds itself...
Additional Business Textbook Solutions
Find more solutions based on key concepts
(Studying Economics) According to the text, economics majors on average make more money than most other majors ...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
How is diversity defined in relation to the workplace?
Principles of Management
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
Define cost object and give three examples.
Cost Accounting (15th Edition)
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
Why are the social security and Medicare taxes paid by the employee not included in labor burden?
Construction Accounting And Financial Management (4th Edition)
Knowledge Booster
Similar questions
- Scroll down to "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present" and download those spreadsheets. https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services Using Table 1, to which three nations (not areas or regions) did the U.S. export the highest dollar value of goods and services in 2021? Using Table 1, to which three nations (not areas or regions) did the U.S. export the highest dollar value of goods and services in 2017?arrow_forwardWhy does a recession cause a trade deficit to increase?arrow_forwardView the data on the trade balance below. Then answer the questions that follow. Is the United States currently in a trade deficit or a trade surplus situation? What is the most recent amount of deficit or surplus? There’s a time between July 2008 and February 2009 when the value of the trade deficit changed substantially. Did the trade deficit increase or decrease during this time?arrow_forward
- A country that is spending more than it makes a- unstable b- trade balance c- trade deficit c- trade surplusarrow_forwardExplain the challenge of a trade deficit on an economyarrow_forwardIn a small open economy, the government decides to remove all trade barriers, transitioning from a protectionist stance to a completely free trade policy. Consider the Heckscher - Ohlin model in this context. A) How is this policy shift likely to affect the country's production and consumption patterns in the short term? B) What would be the expected impact on the distribution of income between the owners of the country's abundant and scarce factors of production? C) Discuss the potential long - term dynamic effects on the economy's growth and development. D) If the economy has a comparative advantage in labor - intensive goods, what kind of structural changes might you anticipate in the domestic industries as a result of this policy shift?arrow_forward
- Will nations that are more involved in foreign trade tend to have higher trade imbalances, lower trade imbalances, or is the pattern unpredictable?arrow_forwardPolicies that .... tend to cause ...... a) decrease investment / a trade surplus b) increase investment / a trade surplus c) increase investment / a trade deficit d) decrease investment / a trade deficit e) increase investment / no effect on the trade balancearrow_forwardIf you observed a country with a rapidly growing trade surplus over a period of a year or so,would you be more likely to believe that the country's economy was in a period of recession or of rapid growth? Explain.arrow_forward
- If a country is importing more than it is exporting it will have a balance of trade trade surplus trade deficit balance of paymentsarrow_forwardIs this correct? Now suppose that a country is experiencing balanced trade. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).arrow_forwardNonearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning