Take a country where GDP is growth at 2.5 percent, the world interest rate is 10 percent, and the trade account surplus is 5 percent of GDP. Then this country can have a long run debt to GDP ratio of 67 percent of GDP 100 percent of GDP 25 percent of GDP 50 percent of GDP 10 percent of GDP

Q: Generally, how does the standard of living in the United States today compare to the standard of…

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A: Explanation of three main reasons Caribbean Islands seek assistance from the International Monetary…

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

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Q: larger government fiscal deficit cause a larger international trade deficit

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A: We are given private savings as 600, government budget surplus as 200 and trade surplus as 100.…

Q: A pro-savings policy by the US would likely reduce the US trade deficit.

A: Answer: True, There is a negative relationship between saving rates and trade balances of a country.…

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A: The sum of money that a nation owes to creditors or lenders abroad is referred to as its foreign…

Q: When there are large federal budget deficits, the trade deficit tends to shrink. a. True O b. False

A:

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A: The twin deficit or double deficit is defined as the economy having both fiscal and current deficits…

Q: None

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Q: trade deficit

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Q: True/False  A pro-savings policy by the US would likely reduce the US trade deficit.

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Q: Discuss the strategy to tackle debt problem of any countries?

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

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A: Tax rate reductions, which result in decreased tax obligations and higher profits or disposable…

Q: United States currently runs a significant trade deficit with the rest of the world. Research an…

A: US mainly has trade relations with Canada, Mexico, China, Japan and Germany.Countries that have…