Define trade deficit, With a high and growing US trade

Define trade deficit

Reference no: EM13174807

a. With a high and growing US trade deficit, many hope that a depreciation of the dollar would help close the deficit. Explain the logic behind this prediction.

b. The US has faced both a trade deficit and a budget deficit, often referred to as 'win deficits'. Explain how these two deficits are related. Show how an increase in the budget deficit is likely to be associated with a deepening of the trade deficit.

Reference no: EM13174807

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