Consider the 3-bucket relationship shown below between the US federal government, the US (Domestic) Private Sector,...

 

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Consider the "3-bucket" relationship shown below between the US federal government, the US (Domestic) Private Sector, and the Foreign Sector as conceptualized by Modern Monetary Theory (MMT). Given the $$ flows shown in the figure, the US Federal Government will end up The Foreign with a budget Sector will end up with a ✓ equal to ✓ The US Private Sector will end up with a ✓equal to equal to US Federal Government $100 $85 The U.S. trade deficit, meanwhile, will equal US Private Sector $12 $8 Foreign Sector Consider the "3-bucket" relationship shown below between the US federal government, the US (Domestic) Private Sector, and the Foreign Sector as conceptualized by Modern Monetary Theory (MMT). Given the $$ flows shown in the figure, the US Federal Government will end up The Foreign with a budget Sector will end up with a ✓ equal to ✓ The US Private Sector will end up with a ✓equal to equal to US Federal Government $100 $85 The U.S. trade deficit, meanwhile, will equal US Private Sector $12 $8 Foreign Sector

Answer rating: 100% (QA)

Step 1 The first bucket which stands for the US Federal Government sends 100 and gets 85 The US Fede... View the full answer