What effect will education have on americas trade deficit

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If Chinese students demand more "education" from universities located in the US, what effect will this have on America's trade deficit? (Hint: remember that the current account balance includes trade in both goods and services) What will the effect be on the Dollar-Yuan exchange rate? Indicate which currency appreciates in terms of the other, and which depreciates. Do foreign students in the US represent an import or an export?

Reference no: EM13212992

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