Is the budget deficit of a country linked to its current account balance? How so? Explain how

Question:

Is the budget deficit of a country linked to its current account balance? How so? Explain how it is possible for the United States’ current account deficit to grow while the budget deficit has disappeared.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Economics

ISBN: 978-0132948913

6th edition

Authors: James Gerber

See More Books

Question Posted: Nov 27, 2015 02:01 AM

See More Questions

What would be the effect of the budget deficit of 2011 on real GDP and jobs?
Is the budget deficit arising from the action described in the news clip structural or cyclical or a combination of the two? Explain.
The cyclically adjusted budget deficit is the budget deficit corrected for the effects of the business cycle. In other words, it is the budget deficit that the government would be running if...
A geostationary satellite orbiting at a height 36,000km operates at 4GHz using a transmitter antenna that has a gain of 15dB. On earth the receiver antenna has a gain of 45dB. Calculate; (a) Free...
A random sample of size 10 from normal population A has a variance of 360. A second, independent, random sample of size 15 from normal population B has a variance of 240. Test a null hypothesis that...
Show that the gamma density function integrates to f(x, , r) integrates to 1.
Acid rain Refer to Exercise 39. Would it be appropriate to use the regression line to predict pH after 1000 months? Justify your answer.
As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank at a nominal 6%, monthly...
your company buys a computer system from IBM for $4 million and pays IBM $500,000 to install the computer system. your company shout record: 1. 3.5 million in equipment and the rest in expenses 2....
Sulphur dioxide is emitted at a rate of 2kg/s from the top of a chimney that is 120m high. The plume initially rises vertically a further 10m above the chimney exit, before being convected...
Weigh the pros and cons of a large trade deficit.
Compare and contrast portfolio capital flows with direct investment capital flows.
One day, Leslie prepared a new snack to serve at preschool: celery stuffed with ricotta cheese and pineapple. The first time she served it, few children touched it. How can Leslie encourage her...
Given the following differential equation, dydx = sin ( x + y ) Find the following: ( a ) The substitution u = ( b ) The transformed differential equation dudx = ( c ) The implicit solution, given...
Consider the following type declarations TYPE Alinteger; A2 pointer to float; A3 pointer to integer; T1 structure (x: integer; } T2 structure (x: A1; next pointer to integer; } b float; } a :...
https://www.viddler.com/embed/82b62f65 Questions: How do companies decide where to locate their facilities? Why has just-in-time inventory control become a dominant production process used in the...
Adjusting Entries for Interest At December 31 of Year 1, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31 of Year 2, Portland also had two notes payable...
We want to get an idea of the actual mass of 235U involved in powering a nuclear power plant. Assume that a single fission event releases 200 MeV of thermal energy. A 1,000 MWe electric power plant...
Determine the hydrologic risk of a roadway culvert with 25 years of expected service life designed to carry a 50-year storm.
In your readings, there were many examples given for nurturing close family relationships in this ever-evolving technological society we live in Based upon your readings and research describe three...
Indicate the order in which the following budget schedules are prepared. (1) Direct materials purchases (2) Manufacturing overhead (3) Income statement (4) Direct labor (S) Selling and administrative...
Describe three types of international capital flows.
Explain the importance of the three main components of the current account.
Define the current, capital, and financial accounts of a countrys balance of payments.
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows:...
1-When accounting for an acquisition, goodwill is the difference between what two things? 2- What factors should be considered when deciding whether an acquisition should be financed with cash or...
What is the main friction Fluidity aims to address? REAL STATE

Is the budget deficit of a country linked to its current account balance? How so? Explain how

Question:

Step by Step Answer:

The budget deficit and the current account are linked but t...View the full answer

International Economics

Students also viewed these Economics questions