Author Question: Why is the U.S. trade deficit almost always larger than the U.S. current account deficit? What ... (Read 103 times)

awywial

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Why is the U.S. trade deficit almost always larger than the U.S. current account deficit?
 
  What will be an ideal response?

Question 2

Refer to Figure 27-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
 
  A) a decrease in government purchases B) a decrease in income taxes
  C) a decrease in interest rates D) an increase in the money supply



Athena23

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Answer to Question 1

The U.S. trade deficit is almost always larger than the U.S. current account deficit because the United States usually runs a surplus on the balance of services.

Answer to Question 2

B



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