2023-09-08T10:12:27+00:00

account deficit

This paper concentrates on the primary theme of account deficit in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.

The media and others suggest that the current account deficit run by the U.S. is a problem for the economy. What do you think? What action(s) would you advise federal government officials to take on this issue?

Additional Comments: The current account is equal to the difference between the value of exports and the value of imports (called net exports), plus net factor income (wages, salaries), plus net unilateral transfers(people or companies sending home money).
The component that we are concerned with is Net Exports

When there is a deficit, then more is going out than is coming in. However, as we saw in the textbook and chat, the US has historically attracted financial capital into the US.
What happens when those $ from foreigners are invested here? What happens if they are spent on consumption?

Note: The Current Account Deficit is not the same thing as the US Federal Government`s Budget Deficit.


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