1. The largest portion of the Current Account is international trade in goods. For the US, this account is tracked by the US Census Bureau (somewhat strangely). Use a web search or search within the US Census Bureau homepage for "US trade in goods with world seasonally adjusted." For the most recent 3 full years, show the total exports, imports, and trade balance in billions US dollars. Year Exports Imports Balance I ($ billions) ($ billions) ($ billions) a. Is the US trade in goods in surplus or deficit? b. Is there any definite trend? 2. Explain 3 ways that a nation that runs a persistent Current Account deficit can finance its excess consumption (note that these are very similar to the ways a household can spend more than its income). 3. A current account deficit must be financed by borrowing from foreigners. It may be beneficial or harmful to a country. Concisely explain in one sentence for each. a. Deficit is beneficial: b. Deficit is harmful:With the following problems, we begin to integrate the 3-sector model. These problems follow from Martinsen, chapter 18 and review many of the concepts from previous chapters. For each economic condition, insert a new supply and/or demand curves. Below the graph, state the change in endogenous variables: increase, decrease, or unchanged. Carefully note the market(s) analyzed in each problem. 4. A pandemic-caused recession grips most of the world economies. Non-essential businesses are shuttered, supply chains are disrupted, and people are told to remain at home. P AS AD L RGDPAnswer for change in P and RGDP: 5. In response to the recession, the central bank enacts expansionary monetary policy beginning with open market purchases of financial securities. Cost of Real Credit S X D RC Answer for change in r and PC: 6. In response the recession, the federal government borrows funds to increase spending engaging in expansionary fiscal policy. Cost of Real Credit S S X DAnswer for r and ROF 7. The federal government increases spending to mitigate a recession. P AS AD RGDP Answer for P and RGDP:8. The central bank lowers interest rates to zero. P AS AD I= RGDP Answer for P and RGDP: 9. The central bank lowers the interest rate engaging in expansionary monetary policy. Show the change in each market beginning with the Real Credit Market Cost of Real Credit P S AS AD D RGDP RC Answer forr DO P and RenDAnswer for r, RC, P, and RGDP: 10. The federal government engages in expansionary fiscal policy. Show the effect in each sector beginning with the Credit Market. Cost of Real Credit P S AS AD D RGDP RC Answer for r, RC, P, and RGDP:11. To keep the domestic currency from depreciating, the central bank intervenes in the foreign exdiange market purchasing the domestic currency with its foreign exchange holdings. FX rate I D Domestic curencyrtimepaiod Answer for F3: and Q of domestic currency: 12. To keep the domestic currency from depreciating, the central bank increases the interest rate above the prevailing rate in other developed counties. FX rate