9. In 2019, the U.S. current account deficit was $480 billion, while the trade deficit was $577 billion.

a. Why are the trade deficit and the current account deficit different?

b. Based on the information in this problem, what were U.S. net capital outflows in the second quarter of 2020? Carefully show how you got your answer and explain, in words, the concept of net capital outflows.

c. Suppose Apple (based in the United States) sold an additional $0.5 billion in iPhones to retailers in Spain. How would this transaction affect the trade deficit? What about net capital outflows? Explain.

d. How would an increase in the U.S. real interest rate affect the trade deficit? Net capital outflows? Explain.