Question: a. How would a decrease in real income in the United States affect the U.S. current account balance? Explain. b. Suppose China decides that it

a. How would a decrease in real income in the United States affect the U.S. current account balance? Explain.

b. Suppose China decides that it needs a huge program of infrastructure spending, which it will finance by borrowing.

How will this program affect the U.S. balance of payments?

Explain.

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