Suppose we are in Balance of Payment equilibrium with a trade deficit of 300. What happens to the trade deficit if the public sector sells 100 in securities to the foreign sector to finance the budget deficit?

Q: If the U.S. dollar appreciates and prices remain the same at home and abroad, foreign goods become…

A: Answer to the question is as follows :

Q: A country finds itself in the following situation: a government budget surplus of $630; total…

A: Answer: Given, Budget surplus (or government saving) = $630 Domestic saving = $990 Investment = $900…

Q: What have been the major causes of the large U.S. trade deficits in recent years? What are the major…

A: "Since you have asked multiple questions. We will answer only first question for you. If you have…

Q: Comment on the following statement: "Since the United States imports more than it expona. It is…

A: The balance of payment (BOP) is the financial statement of a country which includes all its…

Q: Why would a market "expectation" of a national rise in the minimum wage in the open macro-economy…

A: The outlook for an economy and the performance of its variables possessed by consumers refer to…

Q: The balance of payment is always balanced.How then do we talk about a surplus or a deficit in the…

A: Here, it is given that the balance of the payment account is always balanced, such that its debit…

Q: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,…

A: Trade deficit refers to a situation in which the value of imports of goods and services of a nation…

Q: Suppose Canada Is experlencing a 12 percent rate of unemployment with stable prices and a trade…

A: Given:  Canada is experiencing a 12% rate of unemployment with stable prices and a trade deficit.

Q: Assume that in 2010, a country had a GDP of $500$⁢500 billion, a budget deficit of $6$⁢6 billion,…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: Which of the following will increase the trade deficit of the US? a. The US dollar depreciating in…

A: A trade deficit occurs when the country has more imports rather than exports and this will result in…

Q: Which of the following is one of the indicators of a rising balance of payments deficit? Multiple…

A: Answer: A balance of payment deficit arises when a country imports more than its exports. The…

Q: Define each of the following terms: c. Trade deficit; devaluation; revaluation

A: Trade deficit: Trade deficit can be defined as a situation where country's import exceeds its…

Q: If Canada borrows more from the foreign countries than it lends to the foreign countries, then…

A: here we find the correct answer as follow;

Q: In 2001, 2002, and 2003, Congress passed the series of tax cuts that President Bush had requested.…

A: The increased consumer spending due to the tax cuts leads the country towards a larger trade…

Q: In 2019 Country A had a current account deficit of $1.2 billion. CountryA's capital account was in a…

A: Current Account is the account which show the value of export and imports done by country in a…

Q: What will happen to the US trade deficit if the US is in a recession while our trading partners are…

A: Trade deficit happens when the country’s export fell and import rises, it means the situation where…

Q: A country finds itself in the following situation: a government budget surplus of $800; total…

A: "Government;s budget surplus occurs when government savings are more than the government…

Q: The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a…

A: Trade deficit is a situation in which value of a country's imports exceeds the value of exports.

Q: Suppose that during a recent year for the United States, merchandise imports were $2 trillion,…

A: Merchandise Trade Balance = Merchandise Exports - Merchandise Import If the Merchandise imports are…

Q: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…

A: The balance of trade of a country is known as the difference between the value of the country's…

Q: In 2014, the United States' balance-of-trade deficit with China was about 10 times as large as the…

A: When talking about IS trade relationship with other countries, it can be said that Has has some…

Q: In the balance of payments statement, a current account surplus will be matched by a   capital and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What would happen if Mexico has a trade deficit with the US?     The demand for U.S. dollar should…

A: Meaning of Balance of Trade: The term balance of trade refers to the situation under which an…

Q: Comparison of Global Current Account surpluses (green and blue bars) and Global Current Account…

A: ANSWER   The symmetry in the chart can be described by the concept of international trade or Open…

Q: Suppose the US goes into a recession where the economy is not growing very quickly (or is actually…

A: A trade deficit occurs when the US imports more products and services than it exports. When a…

Q: 2. Graphically show the impact of the following on the real exchange rate and the trade balance (a)…

A: The real exchange rate is the price of commodities and services produced in foreign comparative to…

Q: Please define trade surplus, deficit and balance concepts. What currency strategy would you suggest…

A: The trade surplus is the situation in the international market which means there is less import…

Q: What is the meaning of a surplus (deficit) on the current account balance? What economic…

A: Current Account Balance A balance of payment is a statement that records all the transactions of a…

Q: Compare and contrast changes in the value of the US Dollar on the trade deficit

A: The trade deficit is a situation where the imports a goods and services of a nation exceeds the…

Q: Comment on the folllowing statement "Since the United States imports more than it exports it is…

A: Capital account and Current account Answer: Capital account and current account are the important…

Q: Q3. A) a. Explain why a stronger Pakistani Rupee could enlarge the. balance-of-trade deficit.…

A: The balance of trade is the difference between the monetary value of a exports of a nation and…

Q: Suppose a country exports $60 million worth of goods and services, while it imports $50 million…

A: The term GDP means the aggregate total output produced by a country in the current year. This…

Q: trade deficits and a negative current account balance

A: When the TB ( trade balance) is in deficit then domestic investment increase domestic saving,…

Q: Other things equal, if the United States continually runs trade deficits, foreigners will own U.S.…

A: Trade deficit refers to the situation where the imports of the country are much higher than the…

Q: 5   List the types of policies that can lead to a current account deficit

A: Answer to the question is as follows:

Q: Exercise 2.2 Consider a two-period economy that has at the beginning of period 1 a net foreign asset…

A: Given Information: The new foreign asset position (in period 1) = -100 Current account deficit (in…

Q: If US is expected to have 12 billion dollars more export and 8 billion dollars less import. How will…

A: Here, given information is: Increase in exports: 12 billion Decrease in imports: 8 billion To…