2. Suppose the US is running a trade deficit. According to our simplified model of exchange rate determination and balan

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2. Suppose the US is running a trade deficit. According to our simplified model of exchange rate determination and balan

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2 Suppose The Us Is Running A Trade Deficit According To Our Simplified Model Of Exchange Rate Determination And Balan 1
2 Suppose The Us Is Running A Trade Deficit According To Our Simplified Model Of Exchange Rate Determination And Balan 1 (81.43 KiB) Viewed 16 times
2. Suppose the US is running a trade deficit. According to our simplified model of exchange rate determination and balance of payments, we must have had a situation of a. US investing (financial investment, here) less in Great Britain (GB) than they invest in the US. b. a currency that is depreciating. c. the US importing less than it is exporting. d. GB investing less in the US than the US is investing in GB. e. none of the above.
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