The main culprit behind the current account deficit is theU.S. trade deficit. In 2020, it was $679 billion.2 Causes Why would the richest country on earth need to borrow money to sustain its economy? It’s because of the trade deficit. Americans spend more on imports than U.S. busines...
ECONOMISTS often worry about a country's current-account deficit. The main reason Britain has run a large current-account deficit in recent years is because its investments abroad, largely in Europe, have performed badly (hardly a surprise given the weak economic performance of Europe in......
There is also some cause for concern when the economy is doing well. The government should be reducing the deficit in an effort to lower the national debt. Deficit spending in a healthy economy could make it overheat, and that could create aboom-and-bust cycle, which could lead to a rece...
What is a Current Account Surplus? What is on-Balance Volume? Discussion Comments Byanon147677— On Jan 30, 2011 Yes, but you fail to explain why the current account deficit is not always undesirable for an economy. WiseGeek, in your inbox ...
country uses external debt to finance investments that have higher returns than the interest rate on the debt, the country can remain solvent while running a current account deficit. If a country is unlikely to cover current debt levels with future revenue streams, however, it may become ...
President Donald Trump is a vocal opponent of the U.S. trade deficit and he believes tariffs are the method to reducing it; economists, however, disagree.
While Revenue expenditure is related to government's expenditure and receipts the Current A/c deals with a country's imports and exports.Answer and Explanation: The Revenue deficit mainly refers to the financial position of the government wherein the government's revenue expenditure exceeds its ...
Current trade deficits: It is the current account deficit of the Balance of payments account of an economy. It occurs when the volume of imports is...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question ...
Along with trade and budget deficits, these are some other deficit-related terms you may encounter: Current account deficit: When a country is importing more goods and services than it exports Cyclical deficits:When an economy is not performing well because of a down business cycle ...
On September 27th, 2011, Congressman Chris Van Hollen wrote a letter to the Congressional Budget Office in which he requested an estimate "of the portion of the federal deficit that is due to the current underutilization of capital and labor resources in the economy". ...