"A current account deficit is not necessarily a bad thing." Discuss this statement, using the two-period small open endo

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answerhappygod
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"A current account deficit is not necessarily a bad thing." Discuss this statement, using the two-period small open endo

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"A current account deficit is not necessarily a bad thing."
Discuss this statement, using the two-period small open endowment
economy model (in which output is exogenous) without government.
Clearly point out the improvement of social
welfare in the graph and discuss what might be the
driver of trade.
this question is international macro economics related pleas be
clear
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