Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 23, Problem 37CTQ
Many think that the size of a
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Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors, such as autos. Explain why this is not true.
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increased to $576.9 billion. Based on your
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Chapter 23 Solutions
Principles of Economics 2e
Ch. 23 - If foreign investors buy more U.S. stocks and...Ch. 23 - If the trade deficit of the United States...Ch. 23 - State whether each of the following events...Ch. 23 - In what way does comparing a countrys exports to...Ch. 23 - At one point Canadas GDP was 1,800 billion and its...Ch. 23 - The GDP for the United States is 18,036 billion...Ch. 23 - Why does the trade balance and the current account...Ch. 23 - State whether each of the following events...Ch. 23 - How does the bottom portion of Figure 23.3,...Ch. 23 - Explain the relationship between a current account...
Ch. 23 - Using the national savings and Investment...Ch. 23 - If a country is running a government budget...Ch. 23 - What determines the size of a countrys trade...Ch. 23 - If domestic Investment increases, and there is no...Ch. 23 - Why does a recession cause a trade deficit to...Ch. 23 - Both the United States and global economies are...Ch. 23 - For each of the following, indicate which type of...Ch. 23 - How did large trade deficits hurt the East Asian...Ch. 23 - Describe a scenario in which a trade surplus...Ch. 23 - The United States exports 14 of GDP while Germany...Ch. 23 - Explain briefly whether each of the following...Ch. 23 - If imports exceed exports, is it a trade deficit...Ch. 23 - What is included in the current account balance?Ch. 23 - In recent decades, has the U.S. trade balance...Ch. 23 - Does a trade surplus mean an overall inflow of...Ch. 23 - What are the two main sides of the national...Ch. 23 - What are the main components of the national...Ch. 23 - When is a trade deficit likely to work out well...Ch. 23 - Does a trade surplus help to guarantee strong...Ch. 23 - What three factors will determine whether a nation...Ch. 23 - What is the difference between trade deficits and...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - A government official announces a new policy. The...Ch. 23 - If a country is a big exporter, is it more exposed...Ch. 23 - If countries reduced trade barriers, would the...Ch. 23 - Is it better for your country to be an...Ch. 23 - Many think that the size of a trade deficit is due...Ch. 23 - If you observed a country with a rapidly growing...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - What is more important, a countrys current account...Ch. 23 - Will nations that are more involved in foreign...Ch. 23 - Some economists warn that the persistent trade...Ch. 23 - In 2001, the United Kingdoms economy exported...Ch. 23 - Imagine that the U.S. economy finds itself in the...Ch. 23 - Table 23.7 provides some hypothetical data on...Ch. 23 - Imagine that the economy of Germany finds itself...
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Similar questions
- Under what conditions will a larger budget deficit cause a trade deficit?arrow_forwardHow big is the trade deficit relative to overall GDP?arrow_forwardWhat 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 tradearrow_forward
- 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?arrow_forwardThe macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit.arrow_forwardHow a devaluation may reduce the trade deficit of a country? What condition is required to reduce trade deficit? If this condition is not met , what type of effect may arise?arrow_forward
- Supposed that a small open economy is running a trade deficit. The government enacts protectionist trade policies (such as a tariff or quota on imports) with a goal of reducing the trade deficit. Show the impact on the trade deficit? what is the impact on the volume of trade? explain whether the government was succesful in reaching its goal.arrow_forwardDefine trade surplus and trade deficit.arrow_forwardIf a country imports more than it exports, it has a trade deficit. True or falsearrow_forward
- If US is expected to have 12 billion dollars more export and 8 billion dollars less import. How will the trade deficit change?arrow_forwardA government official announces a new policy. The country wishes to eliminate its trade deficit, but will strongly encourage financial investment from foreign firms. Explain why such a statement is self- contradictory.arrow_forwardWe often hear that trade deficits are bad for a country. Should we agree or disagree with this viewpoint?arrow_forward
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