Will tariff-non-tariff barriers have impact on BCA deficit

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Reference no: EM131819120

Given the relationship between Balance of Payments and National Income, for a given level of “I” and “(T – G)”, “S” must be increased to increase BCA. For a given level “S” and “(T – G)”, “I” must be reduced to increase BCA. For a given level of “(S – I)”, “(T – G)” must be reduced to reduce the BCA deficit. Will tariff and non-tariff barriers have impact on BCA deficit?

Reference no: EM131819120

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