Solution-Trade deficit and a net capital account deficit

Trade deficit and a net capital account deficit

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Reference no: EM131413600

Assume the world consists of two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, why does the US have to run a trade deficit and a net capital account deficit? What is in the impact on US national income and employment?

Reference no: EM131413600

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Trade deficit and a net capital account deficit

Reference no: EM131413600

Reference no: EM131413600

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