Although popular opinion frequently portrays trade deficits (actually, account deficits) as "bad," can you present economic reasons why a trade deficit might be considered "good"?
A current account deficit simply means that the country is purchasing more goods and services from foreigners than it is selling to them. In addition, when an economy is attractive to foreign investors, capital will flow into the country. This inflow of capital will cause the domestic currency to appreciate, which will often lead to a trade deficit.
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The first systematic attempt to explain the determinants of the price level and national levels of income, employment, consumption and real Gross Domestic Product (GDP) was made by ________ economists
A) supply-side B) classical C) Keynesian D) monetarist
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average variable cost of producing 10 baseball hats per hour is
A) $1. B) $2. C) $20. D) More information is needed to answer the question.