Country net financial inflow and current account

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Question1. Determine what has caused the United States run a merchandise trade deficit year after year since the early 1980s?

Question2. Is the current account a deficit problem? Explain.

Question3. Is the trend of the international investment position of the United States problematic? Why or why not?

Question4. How is the current account related to a country's business cycle?

Question5. Discuss the relationship between a country's net financial inflow and its current account?

Question6. How does the U.S make adjustments for the balance of payment issues?

 

Reference no: EM1375093

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