Politicians often decry the large trade deficit of the United States. Economists reply that to reduce the

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Politicians often decry the large trade deficit of the United States. Economists reply that to reduce the trade deficit would require a tax increase or a cut in government expenditures. Explain the economists' view using the analysis of the saving-investment balance in Figure 28-8. Also, explain the quotation from the Economic Repart 2000 on page 565.
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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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