Why do some economists think a global savings glut contributed to the U.S. running a current account deficit in the 2000s?
What will be an ideal response?
Several developing economies in Asia and Eastern Europe increased their savings as their incomes increased. In addition, Japan increased its savings as many people prepared for retirement. With high savings rates and relatively limited opportunities for investment, funds from these countries flowed into the United States, bidding up the value of the dollar. The high value of the dollar reduced U.S. exports and increased imports, contributing to the current account deficit.
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The table above gives the supply and demand schedules for scooters. Because of increased injuries sustained by children riding scooters, Citizens Against Scooter Accidents successfully lobbies the government to impose a price floor of $80
00 on scooters. a) What is the quantity demanded and supplied after the price floor has been imposed? b) Is there any shortage or surplus at this price floor? If so, how much? c) If the price floor is raised to $110.00, what is the quantity demanded and supplied? d) At a price floor of $110.00, is there any shortage or surplus? If so, how much?
An asset is anything of value owned by a person or firm
Indicate whether the statement is true or false