question archive Suppose that the dollar amount of goods and services that Americans buy - that is, import - in 2020 from all other countries will be the same as the amount that Americans bought from all other countries in 2019
Suppose that the dollar amount of goods and services that Americans buy - that is, import - in 2020 from all other countries will be the same as the amount that Americans bought from all other countries in 2019
Subject:EconomicsPrice: Bought3
Suppose that the dollar amount of goods and services that Americans buy - that is, import - in 2020 from all other countries will be the same as the amount that Americans bought from all other countries in 2019. Suppose further that in 2020 non-Americans will want to invest more in America than non-Americans invested in America in 2019. The result of the above two facts will be
- an American current-account (or "trade") deficit in 2020 that is higher than the American current-account deficit in 2019
- an American current-account (or "trade") deficit in 2020 that is lower than the American current-account deficit in 2019
- an American capital-account surplus in 2020 that is higher than the American capital-account surplus in 2019
- an American capital-account surplus in 2020 that is lower than the American capital-account surplus in 2019
There is more than one correct answer among options a., b., c., and d.
