If domestic investment increases, and there is no change in the amount of private and public saving, what must happen to the size of the trade deficit?

Q: If the U.S. dollar appreciates and prices remain the same at home and abroad, foreign goods become…

A: Answer to the question is as follows :

Q: A country finds itself in the following situation: a government budget surplus of $630; total…

A: Answer: Given, Budget surplus (or government saving) = $630 Domestic saving = $990 Investment = $900…

Q: Future U.S. deficits could be decreased by     Question 36 options:   decreasing current and…

A: Below are the two reasons for the government deficit: *Excess government spending. *Low rate of…

Q: What have been the major causes of the large U.S. trade deficits in recent years? What are the major…

A: "Since you have asked multiple questions. We will answer only first question for you. If you have…

Q: Which policy measure is most likely to be effective in reducing a balance of trade deficit? Pick…

A: This situation is also referred as negative trade balance.

Q: Is a trade deficit bad? Check all that apply. a. Yes, if current consumption is lower, and…

A: Trade deficit happens,when imports are greater than exports. a.Current consumption should be greater…

Q: If the trade deficit of the United States increases, how is the current account balance affected?

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: If a country imports more than it exports, it has a trade deficit. True or false

A: Balance of payments is the difference between the the value of the trade exports and imports in the…

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: Future U.S. deficits could be decreased

A: Fiscal deficit means that government's expenditure is more than it's revenue.  Future U.S. deficits…

Q: Only one of the following statements about the trade surplus is correct. Which one is it? a. the…

A: Trade surplus refers to an economic measure of a positive BOT(Balance of trade) in which a country's…

Q: Using the national savings and investment identity, explain how each of the following changes…

A: The trade balance refers to the record of the exports and the imports of a country to or from other…

Q: When looking only at the import and export of services, the U.S.    a. has a trade deficit b. has a…

A: When imports of a country are greater than its exports, it is said to have a trade deficit. When…

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: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,…

A: Trade deficit refers to a situation in which the value of imports of goods and services of a nation…

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

A:

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: 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: How does a growing trade deficit affect a country's GDP?  Explain your answer.

A: GDP refers to the final value of goods and services produced in an economy during a year. The GDP is…

Q: What does a trade deficit imply?     saving is greater than domestic investment and Y > C + I + G…

A: Trade deficit is said to occur when a country imports more goods and services from other countries…

Q: How a devaluation may reduce the trade deficit of a country? What condition is required to reduce…

A: Devaluation is the fall in the value of a country's currency. As a result of fall in exchange rate,…

Q: What will happen to the US trade deficit if the US is in a recession while our trading partners are…

A: Trade deficit happens when the country’s export fell and import rises, it means the situation where…

Q: Investment equals $2,120 million in your country. Private saving is $2,750 million and the…

A: Trade balance: - trade balance is the difference between a country’s exports and imports in terms of…

Q: How can the United States improve trade deficit? Give three solutions.

A:

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: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…

A: The balance of trade of a country is known as the difference between the value of the country's…

Q: Suppose that during a recent year for the United States, merchandise imports were $2 trillion,…

A: A merchandise trade deficit occurs when a country imports more goods than it exports in a given span…

Q: Define the term TRADE DEFICIT

A: According to the given question Deficit in simple word we can say that when the level of the amount…

Q: Suppose we are in Balance of Payment equilibrium with a trade deficit of 300. What happens to the…

A: Selling of securities recorded under the capital account. IT does not affect the trade deficit.

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

A: The trade deficit is a situation where the imports a goods and services of a nation exceeds the…

Q: What change in the budget deficit will cause the trade deficit to increase, all else the same? A)…

A: A budget basically refers to an estimate of future income and spending that is generally prepared…

Q: A trade deficit means a net    inflow of payments for goods and services outflow of goods and…

A: In foreign trade,  exports signify the amount of domestic goods and services that foreign firms and…

Q: If US is expected to have 12 billion dollars more export and 8 billion dollars less import. How will…

A: Here, given information is: Increase in exports: 12 billion Decrease in imports: 8 billion To…