Chapter 23: Q 1. (page 575)
If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance?
No, it will not show up.
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If you observed a country with a rapidly growing trade surplus over a period of a year or so, would you be more likely to believe that the country's economy was in a period of recession or of rapid growth? Explain.
What determines the size of a country’s trade deficit?
What three factors will determine whether a nation has a higher or lower share of trade relative to its GDP?
If countries reduced trade barriers, would the international flows of money increase?
The GDP for the United States is \(18,036 billion and its current account balance is –\)484 billion. What percent of GDP is the current account balance?
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