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The answer to Trade Deficit
1. What has caused the U.S. run a merchandise trade deficit year after year since the early 1980s?
2. Is the current account a deficit problem? Explain.
3. Is the trend of the international investment position of the U.S. problematic? Why or why not?
4. How is the current account related to a country's business cycle?
5. What is the relationship between a country's net financial inflow and its current account?
6. How does the U.S make adjustments for the balance of payment issues?
P stands for price Pr stands for price of related good also N stands for per capita disposable income.
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The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers.
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Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions. Comment on the significance of time trend and seasonality.
Illustrate what additional economic questions might you be able to study that you wouldn't with a traditional brick and mortar retailer.
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