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: Explain why a country can have a large trade deficit combined with a current account surplus. In…

A: The current account balance and the trade balance are important measures of a nation's economic…

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: 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: Australia has a current account surplus of $3 billion per quarter and a net income deficit of $3…

A: The balance of payments (BOP) account is a record of all economic transactions between residents of…

Q: Net exports and net capital outflow: 1. Which of the following statements about a country with a…

A: Trade deficit is a situation where the total exports of the economy will be lower than the imports…

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: 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: In the past year, South Africa has maintained a significant deficit in its balance of payments.…

A: Balance of payments:The balance of payments account is an account of a country where the record of…

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

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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: 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: 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: 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: 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: 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…

Q: in the international market, if its A nation is considered to be a(n) current account is in deficit.…

A: Current Account is one of the components of Balance of Payment. Current account depicts about the…

Q: A government official announces a new policy. Thecountry wishes to eliminate its trade deficit, but…

A: The situation that depicts where imports of a country tend to exceed exports of a country is known…

Q: Explain and illustrate with a diagram how a country’s current account deficit might cause a change…

A: A change in the currency account deficit affects a currency's value. Here let's take when the…

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: Discuss this statement : " Because each nation's balance of payments equals zero , it follows that…

A: The goal of a balance of payments deficit or surplus is to comprehend the debt or rest in a…

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: The United States has a current account deficit equal to about 3.5 percent of GDP. Suppose that the…

A: Gross Domestic Product (GDP) is defined as the final value of all goods and services produced during…

Q: Question: How is this likely to affect economies that are heavily dependent on oil imports? a)…

A: The question is asking about the potential effects on economies that are heavily dependent on oil…

Q: An increase in government spending in a simple open economy leads to An increase in the budget…

A: Fiscal Policy  Fiscal policy refers to the policy of the government and central bank by which the…