Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Ethics A Stakeholder And Issues Management Approach

Authors: Joseph W. Weiss

7th Edition

1523091541, 978-1523091546

Students also viewed these Economics questions

Question

What do you need to know about motivation to solve these problems?

Answered: 1 week ago