Answer to Question #49879 in Macroeconomics for lauren

Question #49879
what is happening to the U.S. trade balance in each of these situations?
a. higher international trade barriers for imported products in U.S.
b. prices in US increases more than prices abroad
c. economic recession starts in Canada
d. nominal exchange rate of US dollar appreciates
1
Expert's answer
2014-12-16T10:08:51-0500
U.S. trade balance in each of these situations will change in such way:
a. higher international trade barriers for imported products in U.S. will increase U.S. trade balance.
b. prices in US increases more than prices abroad - this will decrease U.S. trade balance.
c. economic recession starts in Canada - this will increase U.S. trade balance.
d. nominal exchange rate of US dollar appreciates - this will decrease U.S. trade balance.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS