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Consider the year 1991, when the U.S. capital account and the current account balances were equal to zero. Suppose that Americans buy $10 million worth

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Consider the year 1991, when the U.S. capital account and the current account balances were equal to zero. Suppose that Americans buy $10 million worth of cars manufactured in Germany. If Germans use the $10 million to buy air conditioners manufactured in America, both the U.S. current account balance and the U.S. capital account balance are equal to $ million. Suppose instead, the German holders of the $10 million in U.S. dollars purchase shares of General Electric stock. The U.S. current account balance would be equal to $ million, and the U.S. capital account balance would be equal to $ million. Now consider the increase in the current account deficit and the increase in the capital account surplus after 1991. One possible cause of this increase was a (n) in domestic savings rates. The graph below plots the U.S. trade balance in services (red line) and goods (green line) from 1990-2020. Refer to the graph when 100% satisfied: https://studymaster.sellfy.store/p/econ-214-problem-set-13-solutions-complete-answers/

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