Question
Please help me on this two question 1 Suppose US consumption rises but government spending and investment do not change. a. What will happen to
Please help me on this two question
1 Suppose US consumption rises but government spending and investment do not change.
a. What will happen to the US trade balance? Explain using an equation.
b. Now suppose that C, I, and G don't change but because of the pandemic there is a big decrease in consumption of services like restaurant meals and hotel rooms and a big increase in purchases of clothing and consumer electronics. What will happen to the US
trade balance?
2 Many people in Britain voted to leave the EU in part so that Britain could negotiate trade agreements with the US, China, and other countries. These people would also like to continue to export and import from the EU-27 without customs inspections or trade barriers. Is this possible? Explain why or why not.
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