Concerned about the trade deficit

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Reference no: EM131094911

If we start with the premise that the US economy is a consumer driven (consumption) economy, would consumers saving their money hurt the economy? If there are more investment opportunities in the US vs other countries, doesn't this speak to the health of the US economy? What is wrong with this line of thinking to cause us to be concerned about the US trade deficit, both annually and cumulatively?

Reference no: EM131094911

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