Economics April 6

Economics April 6 - foreigners invest in the U.S....

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Economics April 6, 2010 All trade is balanced = current account (deficit) balanced by capital account (surplus) Rising trade deficit can be a symptom of government debt Budget deficit: the government takes in more than it exports, taxpayers must pay of debt Higher the savings rate in society means the greater the innovation and growth of a society. It is good that
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Unformatted text preview: foreigners invest in the U.S. Bankruptcy: Firm’s value is significantly lower than upkeep Investment selling dollar dominated assets increases trade deficits and shows up in capital account Increasing trade between countries decreases war....
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This note was uploaded on 01/27/2011 for the course ECON 362 taught by Professor Bipen during the Spring '10 term at George Mason.

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