Several members of Congress have been highly critical of Japan and China because U.S. imports from these

Question:

Several members of Congress have been highly critical of Japan and China because U.S. imports from these countries have persistently been substantially greater than our exports to them.

a. Under a flexible exchange rate system, is there any reason to expect that the imports from a given country will tend to equal the exports to that country? 

b. Can you think of any reason why the United States might persistently run a trade deficit with these countries?

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

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Question Posted: