If a persistent US current account deficit should eventually depreciate the dollar and eliminate the deficit, why

Question:

If a persistent US current account deficit should eventually depreciate the dollar and eliminate the deficit, why has not happened thus far?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics Principles Applications And Tools

ISBN: 9780134089034

7th Edition

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

See More Books

Question Posted: Mar 01, 2017 01:15 PM

See More Questions

The 2006 Economic Report of the President directly addressed whether the United States can continue to run large current account deficits and, of course, financial account surpluses. In the report,...
a. Do you think the yuanU.S. dollar exchange rate is a problem for Americans or the source of the U.S. current account deficit? b. Do you think that appreciation of the yuan against the U.S. dollar...
a. Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker dollar could affect the U.S. balance of- trade deficit. b. It is sometimes suggested that a...
a) which ionization gives the best sensitivity the analysis of chloramphenicol? b) The compound with highest retention factor? c) What is the resolution between yohimbine and chloramphenicol? d) What...
Identifying source, use, and exchange transactions Required Indicate whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE)...
Murrells formula for calculating the total amount of rest, in minutes, required after performing a particular type of work activity for 30 minutes is given by the formula where w is the work expended...
Refer to the case of Shahrukh Khanna and Sons given in the exercises in the last chapter. Shahrukh Khanna now wants to know as to where his firm stands after one month of running. Help him. Towards...
What new electronic technologies have contributed to the problems, and solutions, of virtual project teams?
The clinic s COO asks you to create a budgeted income statement ( also called a profit and loss statement ) for the clinic for the upcoming fiscal year. She has asked an intern to create a volume...
Determine if the unity feedback system of Figure P6.3 with K(s? + 1) G(s) = %3D (s + 1)(s +2)
Suppose that in 2020 the U.S. stock market boomed reflecting rapid growth in the U.S. economy. In terms of demand for and supply of dollars, explain what possible impacts this rapid increase in stock...
The role of eduction is to prepare children for modern world. Education should be accessible to people of all economic background. To what extent do you agree with this opinion?
What feature of molecular orbital theory is responsible for bond formation?
An agreement that is inherently anticompetitive is illegal per se. (True/False)
Explain how each of the following situations illustrates one of the five principles of interaction. a. Using eBay any student who wants to sell a used textbook for at least $30 is able to sell it to...
When does price discrimination violate antitrust laws?
Under the rule of reason, conduct is unlawful if its anticompetitive effects outweigh its competitive benefits. (True/False)
Define monopolization.
What property of the XHR object stores the JSON data from an Ajax request?
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
For the right circular cone of Sample Prob. 9.11, determine the value of the ratio a/h for which the ellipsoid of inertia of the cone is a sphere when calculated (a). At the apex of the cone, (b). At...
For the homogeneous circular cylinder of radius a and length L shown, determine the value of the ratio a/L for which the ellipsoid of inertia of the cylinder is a sphere when computed (a) At the...
Given an arbitrary body and three rectangular axes x, y, and z, prove that the mass moment of inertia of the body with respect to any one of the three axes cannot be larger than the sum of the mass...
1) Pretend that you work in a hospital. Its not really possible to have an MVP for something like surgery. For example, you cant complete half a surgery, check for market feedback, then go back and...
Many Geotechnical engineering projects require knowledge of the shear strength of soils. What is the purpose and goal of the direct shear test ?
a) A person has set out to deposit $750 per month for 5 years (60 months) into a bank account that pays 1.75% per month interest at the end of each month. What will be the accumulated amount at the...

If a persistent US current account deficit should eventually depreciate the dollar and eliminate the deficit, why

Question:

Step by Step Answer:

It is correct that current account deficit has the effect of depreciating the doll...View the full answer

Macroeconomics Principles Applications And Tools

Students also viewed these Cost Accounting questions