You recently read a headline that states: The U.S. loses $500 billion a year to trade with
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You recently read a headline that states: “The U.S. loses $500 billion a year to trade with China.” This amount would be included as part of the U.S. current account deficit. How is this headline misleading? How do these transactions affect the loanable funds framework?
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The headline claiming that The US loses 500 billion a year to trade with China is potentially misleading in the context of economics and the current a...View the full answer
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