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."

In the balance of payments statement, a current account surplus will be matched by a   capital and financial accounts deficit capital and financial accounts surplus trade deficit trade surplus   A trade deficit means a net  ? inflow of payments for goods and services outflow of goods and services inflow of goods and services excess of exports over imports

The United States has a current account deficit equal to about 3.5 percent of GDP. Suppose that the US Government decides that it wants to reduce that to about 2.0 percent of GDP. A current account deficit means that the US is a For the US current account balance to Consequently one of these things must happen: US investment private savings net lender to exports and imports government expenditure US domestic savings must rise; and/or must fall. be balanced rise net taxes government savings net foreign income the rest of the world. (as they wish it to) then rest of the world savings must net borrower from net exporter of goods and services to MacBook Air be less than US savings fall net importer of goods and services from

You have the following annual figures for the New Zealand economy.             Investment expenditure                      $42.5 billion            Government savings                           -$1.7 billion The current account balance is not zero.  In fact the current account deficit is $6.0 billion.  What is New Zealand's actual private sector savings figure?  $____billion (use 1 d.p.).

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?

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

of An increase in government budget deficits will necessarily be associated with an worsening of the current account balance. True False

What is a trade deficit? a) When a country exports more goods than it imports b) When a country's imports and exports are balanced c) When a country imports more goods than it exports d) When a country has no international trade

We may use the diagram below (Figure 2, panel (a)) to assess whether trade deficits are bad. Use the diagram to explain whether (or when) trade deficits are bad.