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3. In the past 30 years, U.S has huge amount of trade deficits. a. Please explain why the tax cuts policy can cause trade deficits

3. In the past 30 years, U.S has huge amount of trade deficits. a. Please explain why the tax cuts policy can cause trade deficits from 1980 to 1987. b. Please explain why an investment boom can cause trade deficits from 1991 to 2000. Percent of GDP 2 Net capital outflow -1 -2 -3 -4 -5 -6 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

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