Solution-Holding increasing amounts of us treasury debt

Holding increasing amounts of us treasury debt

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Reference no: EM131483944

The government of China is growing concerned about holding increasing amounts of US treasury debt. To deal with the problem, it decides to do something to reduce China's trade surplus.

a.) If the government of China does not want to reduce the country's exports, what should happen to its imports?

b.) If private savings and investment are to remain unchanged in China, what should happen to the government's budget deficit?

Reference no: EM131483944

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Holding increasing amounts of us treasury debt

Reference no: EM131483944

Reference no: EM131483944

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