Why is the U.S. trade deficit almost always larger than the U.S. current account deficit?
What will be an ideal response?
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.
You might also like to view...
In order to maximize profits, a firm should produce at the output level for which
a. average cost is minimized. b. marginal revenue equals marginal cost. c. marginal cost is minimized. d. price minus average cost is as large as possible.
According to new classical theory, if the public correctly anticipates a government policy to increase aggregate demand, then the
A) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be downward-sloping. B) long-run Phillips curve will be upward sloping, but the short-run Phillips curve will be downward-sloping. C) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be vertical. D) long run Phillips curve will be upward sloping, but the short-run Phillips curve will be vertical. E) short- and long-run Phillips curves will be vertical.