Excessive current account surpluses, International Economics

Assignment Help:

Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses.

Answer: This pursue from the national income identity S = CA + I which says that total domestic savings S is divided among foreign asset accumulation CA and domestic investment I.


Related Discussions:- Excessive current account surpluses

Income distribution effects of trade, Q. "The H.O. model remains useful as...

Q. "The H.O. model remains useful as a way to predict the income distribution effects of trade." Discus s. Answer: The Stolper-Samuelson theorem, one of the basic theorems ari

Effects of a permanent increase in the u.s. money supply, Q. Explain the ef...

Q. Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run. Assume that the U.S. real national income is constant. A raise in

Nature and basis of international trade, discus how every economy is essent...

discus how every economy is essentially part of the international economy

Protectionism, what are the theories supporting protectionism

what are the theories supporting protectionism

Conditions of domestic internal scale economies, Q. Why is it that an indu...

Q. Why is it that an industry is performing under conditions of domestic internal scale economies (applies to firm in the country) - then the resultant equilibrium can't be consis

PPP, Why would interest rate parity hold better than Purchasing power parit...

Why would interest rate parity hold better than Purchasing power parity overtime?

Wto, economic theories to explain free traden..

economic theories to explain free traden..

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd