Asked by
Jonae' Thompson
on Nov 26, 2024
Verified
One of the causes of the rising trade deficits of the past decade has been a declining saving rate in the United States.
Trade Deficits
A situation where a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.
Saving Rate
The portion of income that is not spent on consumption but is saved or invested for future use.
- Outline how trade surpluses and deficits influence the financial state of a country.
- Explain the factors leading to changes in a nation's balance of payments and the significance of these changes.
Verified Answer
JS
Learning Objectives
- Outline how trade surpluses and deficits influence the financial state of a country.
- Explain the factors leading to changes in a nation's balance of payments and the significance of these changes.