ECON final cheat

ECON final cheat - of production) is it bad? No b/c it is...

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Trade Restrictions- Tariffs and Quotas Tariff- tax imposed by importing country on imported goods Quota- limits the number of imported goods Balance of Payments Accounts (BOP) 3 BOP accounts (only 2 important) 1. Current Account- records payments for imports of goods and services abroad, net interest income paid 2. Capital Account- records foreign investment in the US and US investment abroad (current acct balance) CEB = E - I + net interest income – net transfer Net Borrower is a country that borrows more abroad than it spends 1960s US was a net lender 2000 US is a net borrower (total net borrowing is 35%
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Unformatted text preview: of production) is it bad? No b/c it is financing investment If borrowing is financing investments> generates economic growth, higher income> borrowing not a prob If borrowing is financing consumption> higher interest payments> eventually consumption must be reduced Government Surplus/Deficit = T- G If T>G has surplus, will lend to other sectors If T<G has deficit, will borrow from other sectors Private Sector Surplus/Deficit = S- I If S>I has surplus, will lend to other sectors If S<I has deficit, will borrow from other sectors Net exports = Private Sector S/D + Gov Sector S/D Y=C+I+G+X-M=C+S+I manipulate X-M=S-I+T-G...
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This note was uploaded on 03/08/2009 for the course ECON 20091_ECO taught by Professor Mohammadsafarzadeh during the Spring '09 term at USC.

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