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

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A: The nations around the world tend to interact with other nations, and get involved in international…

Q: Explain three main reasons Caribbean Islands seek assistance from the International Monetary Fund.

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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A: International financial market is one of the form of global market where people from different…

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

A: ‘Fiscal deficit’ refers to the difference between total income & expenditure of the…

Q: In a country, private savings equals 600, the government budget surplus equals 200, and the trade…

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.…

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 balance of trade shows a deficit of $200 million. With the value of exports being $300 million,…

A: The values given are:- Balance of trade = -200 million -ve sign is there because the Trade balance…

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A: Given, Rate of interest (r) = 5% Current wealth (W1)= 100 million Trade deficit in first period =…

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A: This can be described as a concept that shows the contribution of an individual, organisation or any…

Q: At the identified level of GDP real, there exists a balance of trade DEFICIT or SURPLUS? Xg/M 0…

A: A nation experiences trade deficit when its exports are lower than its imports. i.e., Export <…

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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 consumption level is given as The import level is given as The tax rate is 25%. The initial…

Q: How could an increase in a nation's fiscal deficit increase its trade deficit?

A: Government budget deficit affects the trade deficits. Budget deficit occurs when spending increases…

Q: Effect of fiscal and monetary policy on foreign direct investment in Zimbabwe

A: FDI describes a cross-border investment made into a business organisation in a different nation by a…

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A: A budget is a document prepared by the government that includes a list of all the revenue streams…

Q: If a country has a trade deficit of $30 billion, which of the following can be true? Group of answer…

A: Trade is the export and import of goods and services from one country to other.  Export are the…

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: The table below includes information on the hypothetical economy of Hersty. Assume the government is…

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

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

A:

Q: None

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A: Fiscal policy combination of increase in taxes and decrease in public spending would be required to…

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A: Macroeconomic policy involves government endeavors with the goal of improving the economic system's…

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

Q: trade deficit

A: When imports exceed exports depicts the trade deficit. They can be of both short term or long term.…

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A: The trade deficit, according to most economists, is mostly due to U.S. macroeconomic policy,…

Q: Cosmopolitan cities are typically characterized by:   Question 12 options:   Rural locations   High…

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

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A: Import of goods and services to an economy from the rest of the world leads to outflow of funds from…

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

A: Trade deficit: It refers to the situation in which the country import exceeds the country’s export.…

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

A: Debt is when one party borrows something from another, most commonly money. Many businesses and…

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: The recent Trump tax cuts are projected to increase the national debt by $24.5 trillion over the…

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