Question

In: Finance

It is well-documented that the United States consistently runs sizable current account deficits. What are the...

It is well-documented that the United States consistently runs sizable current account deficits. What are the long-term risks associated with running current account deficits? If you were able to influence policy decisions in the United States, what policies would you implement to minimize these long-term risks?

Solutions

Expert Solution

jeff jeffy answered 5 months ago
Next > < Previous

Related Solutions

19. The United States has experienced persistent current account deficits, reflecting the fact that ___________. A)...
19. The United States has experienced persistent current account deficits, reflecting the fact that ___________. A) this country’s national saving is more than its domestic investment B) this country’s domestic absorption exceeds its GNP C) this country’s economic growth has been slow D) this country’s unemployment rate has been too high. 23. If a country runs a financial account surplus, it means that __________________________. A) this country’s asset imports exceed its asset exports B) this country’s international debt accumulates C)...
What are the dangers to a nation from running persistently large current account deficits. Is Australia...
What are the dangers to a nation from running persistently large current account deficits. Is Australia in danger of being in this position? What are the main factors contributing to Australia’s current account deficit?
Some economists are not worried about the record current account deficit of the United States. Explain...
Some economists are not worried about the record current account deficit of the United States. Explain why that might be the case. Compare it with the situation of countries like Mexico and Brazil in the 80s and 90s. Please provide a full answer.
Robert Carbaugh asks the the question, "Can the United States continue to run a current account...
Robert Carbaugh asks the the question, "Can the United States continue to run a current account deficit year after year?" Carbaugh discusses the pros and cons of the U.S. government continually running a current account deficit. His arguments for and against current account deficits are quite compelling. Not only that, this question carries plenty of relevance being that we borrowed heavily to dig our economy out of recession. I would like for you to discuss in detail where you stand...
Explain why economies with financial account surpluses usually have current account deficits.
Explain why economies with financial account surpluses usually have current account deficits.
Turkish economy has struggled with current account deficits since the 2000s. However, although current account balance...
Turkish economy has struggled with current account deficits since the 2000s. However, although current account balance had a deficit, an adjustment in current account balance was observed in years 2002, 2009 and 2018. Discuss what type of automatic mechanisms and adjustment policies might have contributed to this adjustment. Explain clearly by being specific about the type of the mechanism and policy for each year.
What is the current budget of United States? What is the share of healthcare and education...
What is the current budget of United States? What is the share of healthcare and education in budget? What is the share of national defense/ military? Analyze the result to take a position, and suggest for changes, if any.WITH REFERENCES
What are some of the current healthcare reform initiatives for the United States.
What are some of the current healthcare reform initiatives for the United States.
What is one danger associated with persistently running Current Account deficits, far below an appropriately-designed target...
What is one danger associated with persistently running Current Account deficits, far below an appropriately-designed target level for the Current Account balance? Name one shock or policy reform which would cause an excessive CA deficit and draw a DD–AA–XX diagram consistent with your example.
What is one danger associated with persistently running Current Account deficits, far below an appropriately-designed target...
What is one danger associated with persistently running Current Account deficits, far below an appropriately-designed target level for the Current Account balance? Name one shock or policy reform which would cause an excessive CA deficit and draw a DD–AA–XX diagram consistent with your example.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT