What policies would you recommend to the U.S. government to lower the balance of trade deficit and decrease net capital inflows?
What will be an ideal response?
Lower the fiscal deficit.
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When a tariff is imposed, the demand curve for the domestic good
A) shifts downward and to the right. B) shifts upward and to the left. C) shifts upward and to the right. D) shifts downward and to the left.
Government can deal with externalities through the use of taxes and subsidies.
Answer the following statement true (T) or false (F)
What do we call financial institutions through which savers can indirectly provide funds to borrowers?
a. stock markets b. financial institutions c. financial markets d. financial intermediaries
The demand for a luxury good whose purchase would exhaust a big portion of one's income is
A. relatively elastic. B. relatively inelastic. C. perfectly elastic. D. unit-elastic.