The us trade deficit with japan

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Reference no: EM131278564

In the early 1990s, Japan underwent a recession that brought about a prolonged slump in consumer spending and capital investment. (Some estimate that in 1994 only 65% of Japan's manufacturing capacity was being used.)

At the same time, the U.S. economy emerged from its recession and began expanding rapidly. Under these circumstances, what would you predict would happen to the U.S. trade deficit with Japan?

Reference no: EM131278564

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