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Show transcribed image text The US has experienced large and growing current account deficits for more than 20 years, whereas Japan has experienced large and growing current account surpluses for roughly the same period. The US economy has grown at faster rates than Japan's over the past 10 years. Use the relationship between the current account and GDP to explain the difference in growth rates between the two economies. In trade negotiations with the Japanese over the large US trade deficit with Japan, the US administration has urged the Japanese government to undertake a more expansionary fiscal policy. Explain how this might affect the US trade deficit with Japan
What factor(s) in demographic segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the indu..
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4.
Healthy Supplies, an investor-owned healthcare supply chain, just paid a dividend (D0) of $4.57 per share. The current price of the stock (P0) is $43 per share. The firm’s required rate of return is 12%. What is the stock’s constant growth rate? How ..
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Explain the following business cycle theories
An increase in the uncertainty of the future profit stream of projects will (assume no wealth effect or other change in the investment decision rule, or shift in the production function)
Given the rapid pace of technological change and financial innovation in financial markets nationally and internationally, would it be economically efficient to not deregulate banking? Explain.
The GDP is $40 billion below its potential value. It is expected that next-period GDP will be $20 billion below potential and that two periods from now it will be back at its potential level. The multiplier for government spending is 2. What is the b..
The U.S. government strongly encouraged unions to be formed in the early 1940s because they held the view that unions would help to
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