What are the reasons for the persistent US current account deficit since 1983? 2. What are...
- What are the reasons for the persistent US current account deficit since 1983?
2. What are the implications of a long-term current account deficit on the economy?
Homework Answers
The reasons for the persistent US current account deficit since 1983 is mainly due to appreciated value of the US dollar which reduces the value of exports of the nation and increases the value of imports of the nation. Thus, current account deficit which considers both the value of exports and value of imports will become negative. Thus, the main reason that has caused persistent US current account deficit is the appreciated value of the US currency with respect to other currencies.
It impacts the investor sentiment and also the debt of the government. It leads to negative investor sentiment and reduces the re paying capacity of the government.
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What are the reasons for the persistent US current
account deficit since 1983?
2. What are...
5. Current account deficit Let G stand for government spending, T for taxes, I for private...
5. Current account deficit Let G stand for government spending, T for taxes, I for private investment, and S for private saving. Complete the following equation for the current account deficit: + Current Account Deficit Which of the following statements about the current account deficit are correct? Check all that apply A successful reduction of a nation's current account deficit must be supported by complementary policies in foreign nations with large current account surpluses Using a current account deficit to...
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Explain the term Financial Account deficit, and give two reasons why a country may have such a deficit.
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checking 7. During the 1980s, the United States experienced "twin deficits” in the current account and...
checking
7. During the 1980s, the United States experienced "twin deficits” in the current account and government budget. Since 1998 the U.S. current account deficit has grown steadily along with rising government budget deficits. Do government budget deficits lead to current account deficits? Identify other possible sources of the current account deficits. Do current account deficits necessarily indicate problems in the economy?
5. Current account deficit Let G stand for government spending, T for taxes, I for private investment, and S for private saving. Complete the following equation for the current account deficit: + Current Account Deficit Which of the following statements about the current account deficit are correct? Check all that apply A successful reduction of a nation's current account deficit must be supported by complementary policies in foreign nations with large current account surpluses Using a current account deficit to...
U.S Trade Deficit Discussion Questions for U.S. Trade Deficit Discussion 1. What is the current US trade balance? trade balances of other industrialized nations (Choose 2)? 2. What are some 3. What are some characteristics that could be used to describe countries with which the US has a trade deficit? her 4. Which of the arguments either for or against sustaining the trade deficit-do you find more persuasive? Why? 5. What are the tradeoffs described by the arguments for and...
To partially overcome the US current account deficit, the Trump Administration neds to attract FDI that could spur the nation's gross domestc prodtuct (GD growth rate. Based on the chapter material, what policy measures should the Trump Administration take to keep attracting FDI into the country? Be mindfu of the tariffs recently imposed by the Administration, as well as the proposed re-structuring of the North American Free Trade Agreement (NAFTA)
checking
7. During the 1980s, the United States experienced "twin deficits” in the current account and government budget. Since 1998 the U.S. current account deficit has grown steadily along with rising government budget deficits. Do government budget deficits lead to current account deficits? Identify other possible sources of the current account deficits. Do current account deficits necessarily indicate problems in the economy?
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