Author Question: Briefly describe the factors that contributed to the U.S. Current Account deficits of the 1990s. ... (Read 94 times)

saliriagwu · **on:** Jun 30, 2018

Briefly describe the factors that contributed to the U.S. Current Account deficits of the 1990s.

What will be an ideal response?

Question 2

The existence of positive externalities due to the impossibility of full appropriability

A) supports the conclusions of the Heckscher-Ohlin model.
B) rejects the usefulness of government protectionism.
C) supports the concept that the government should support only high-tech industries.
D) provides support for government protectionism.
E) supports arguments for free trade.

vickyvicksss · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Rapid U.S. economic growth raised income and import demand; economic growth was low or negative for U.S. trading partners, depressing export demand.

Answer to Question 2

D