Question: 2 The US dollar has maintained or increased its value over the past 20 years despite running a gradually increasing current account deficit. Why has

2 The US dollar has maintained or increased its value over the past 20 years despite running a gradually increasing current account deficit. Why has this phenomenon occurred? (8 points)

3. What is a balance of payments account? What international transactions are reported in its three subaccounts? Explain why in accounting sense, the balance of payments account must balance, i.e., the balances in all three accounts must add to zero. (10 poins)

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