Comment on the folllowing statement "Since the United States imports more than it exports it is necessary for the United States to import capital from foreign countries to finance its current account deficits."

Q: To derive the demand curve for a firm for one of the several variable factors, the following must be…

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

Q: Suppose that in the country of Mistania, investment spending increases from $1740 to $1940. There is…

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Q: Now consider a small open economy, assuming domestic output is held constant and the country…

A: A small open economy's currency is impacted heavily by capital flows.

Q: trade plays an important role in the development of any economy. ii. If there is expansionary fiscal…

A: Economic growth  1) The economic growth refers to situation when there is a monetary increase in…

Q: What is meant by deficit in balance of payments?

A: The balance of payments takes into account the inflow and outflow of the money for a country.  It is…

Q: Complete the following table by filling in the quantity sold, the price buyers pay, and the price…

A: The tax burden refers to the total amount of tax paid by a particular group of people. In other…

Q: 18. The hypothetical country runs a current account A) surplus; $100 B) deficit; $120 C) surplus;…

A: Calculate the current account balance as follows:Explanation:The country exports $1000 worth of…

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: The United States typically has a balance-of-trade deficit in its trade with which two countries?…

A: Trade deficit is a situation where a country imports more than what it actually exports. It is also…

Q: 4. Small Open Economy and trade deficit Suppose that Ecuador is a small open economy running a trade…

A: The trade deficit is the situation in the economy when the imports in the economy exceed the exports…

Q: In which of the following circumstances should a small open economy run a trade deficit? Select all…

A: An economy that's hospitable trade and to flows of capital across its borders which is little…

Q: How big is the trade deficit relative to overall GDP?

A: The gross domestic product (GDP) is a standard measure of the value added created by the production…

Q: Capital flight is the sudden large drop in demand for domestic assets. Explain the following: if we…

A: Capital flight is the flow of domestic financial resources to foreign countries. The capital flight…

Q: 1) When a country realizes a deficit on its current account: a. It realizes an excess of imports…

A: The balance of payments would involve the record of transactions which are involved in the…

Q: If the dollar rises in value against other currencies, this will Multiple Choice lower our trade…

A: Appreciation of currency refers to the increase in the value of one currency as compared to the…

Q: The following table shows the value of credits and debits in four balance-of-payments accounts in…

A: The value of credit and debit in the four balance of payment account for the economy is given as…

Q: What is a trade deficit, and why does it hurt us to consistently run a deficit with another country?

A: Answer: Introduction: A trade deficit occurs when a country imports more than what it exports. It is…

Q: Suppose a Portuguese citizen travels to Tanzania to go on a safari and uses euros for the…

A: Balance of Payment: The balance of payments is a systematic record of all economic transactions…

Q: When looking only at the import and export of services, the U.S.    a. has a trade deficit b. has a…

A: When imports of a country are greater than its exports, it is said to have a trade deficit. When…

Q: In an open economy, if exports equal $8 billion and imports equal $3 billion, then there is a trade…

A: Net capital outflow is the net flow of funds being invested abroad by a country over a certain…

Q: 3. Briefly discuss the following statement, explaining what is right or wrong about it: "The average…

A: 3) The statement explains that the current account balance of all countries in the world is in…

Q: An increase in government spending in a simple open economy leads to Fall in both budget and current…

A: With higher government spending, government's expenditure will be more than the government's revenue…

Q: Some economists argue that the current account deficit in the United States is less problematic than…

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Q: The US typically imports (M) more goods and services than it exports (X). a. Explain what this…

A: a. The main component of a country's current account balance is usually invariably its trade deficit…

Q: Which of the following statements is NOT CORRECT regarding a country's current account? Higher…

A: The current account is a summary of a country's economic transactions with the rest of the world,…

Q: large tax cut in the United States should lead to an increase in the trade deficit. True Fals

A:

Q: Effect of Foreign Interest Rates - Peter Thiel. If foreign interest rates rise, this will cause the…

A: If foreign interest rates rise, this will cause the net capital outflow to increase. Because,…

Q: Evaluate how a growing trade deficit influences the US economy

A: The difference between exports and imports of goods and services in an economy is called the trade…

Q: Who receives the greatest benefit from a trade deficit? O Foreign consumers O Domestic farmers…

A: The trade deficit is the deficit in the balance of trade account. The balance of trade account is…

Q: We often hear that trade deficits are bad for a country. Should we agree or disagree with this…

A: Trade deficit is a situation which arises when the imports of the country exceeds its exports that…

Q: the US trade deficit is made possible, in part, because of foreigners' demand for US financial…

A: The trade deficit reflects the fact that foreigners want to invest in America, so they sell us goods…

Q: State whether each of the following events involves a financial flow to the Mexican economy or a…

A: Financial flows refer to the movement of financial capital, such as money for investments from…

Q: Assume an economy has a large current account deficit. Indicate the causes and consequences of it in…

A: A current account deficit takes place while a country's total imports of goods, services, and…

Q: country with current account deficit indicates a sign of weakness while a country with current…

A: Actually, current account deficits are not in every case terrible, and nor are current account…

Q: Over the past four years, the US trade deficit has increased to $576.9 billion. Based on your…

A: In the face of globalization, the practice of maintaining trade deficits has become increasingly…

Q: What is current account deficit? List down, with detailed explanations, what causes current account…

A: Current Account forms a part of a country's Balance of Payments (BOP). It includes trade in goods…

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: Everything else equal, if a country has exports of $15 billion and imports of $16 billion, it…

A: The economies around the globe are involved in trading activities with each other. The countries…

Q: Discuss the following statement: “It’s true that running a current account deficit for a developing…

A: A current account deficit in the economy occurs when the export in the country is greater than the…

Q: Discuss the implications of a persistent current account deficit for an open economy like Pakistan…

A: A current account deficit is a trade indicator that indicates a country's imports of goods,…

Q: A Current account deficit often raises the opposition of protectionists who think that a current…

A: There are other points of disagreement, including the definition of a current account deficit or…

Q: The U.S. government gives $1,000,000 to Somalia. In the U.S. balance of payments, the gift of funds…

A: The Balance of payment (BOP) is the account that records the transaction of the country with rest of…