Research the U.S. Trade Deficit on the internet. • How has it changed recently? • Do you expect this trend to continue? • Is this trade deficit a bad thing or a good thing, and why? • What should we do about it if anything? In October, the US trade deficit narrowed sharply, while only a slight decline was expected. The deficit shrank from a revised $44.6 billion to $38.7 billion, while a shortage of $43.8B billion was expected. This is the smallest trade gap since January. The one-month improvement in the deficit is the biggest since July. Some of the strength in exports could be tied to a weaker dollar. Relatively stronger growth in emerging market economies compared with the industrial world might be another factor, analysts said. The narrowing of the deficit in October was a surprise to economists. Analysts surveyed by Market Watch had expected the deficit to widen slightly to $44.3 billion from the initial September estimate of $44 billion. At a minimum, the October
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This note was uploaded on 11/02/2011 for the course ECONOMY G123/EC100 taught by Professor Melissa during the Spring '10 term at Rasmussen College.