CH 6.5

CH 6.5 - Macroeconomics CH 6.5 The United States is an open...

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Unformatted text preview: Macroeconomics CH 6.5 The United States is an open economy : an economy that trades goods and services An open economy is an economy that trades goods and services with other countries. A country runs a trade deficit when the value of goods and services bought from foreigners is more than the value of goods and services it sells to them. It runs a trade surplus when the value of goods and services bought from foreigners is less than the value of the goods and services it sells to them. with other countries. There have been times when that trade was more or less balanced—when the United States sold about as much to the rest of the world as it bought. But this isn’t one of those times. In 2007 the United States ran a big trade deficit —that is, the value of the goods and services U.S. residents bought from the rest of the world was a lot larger than the value of the goods and services American producers sold to customers abroad. Meanwhile, some other countries were selling much more to foreigners than they were buying:...
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This note was uploaded on 09/20/2011 for the course ECO 2023 taught by Professor Sabet during the Fall '08 term at FIU.

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CH 6.5 - Macroeconomics CH 6.5 The United States is an open...

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