ECON CT3RA - The government published the data on the U.S
Question # 00554219
Posted By:
Updated on: 06/29/2017 06:42 AM Due on: 06/29/2017
Eassy Question:Assume that yesterday, the government published the data on the U.S. trade deficit. The numbers suggest a $35 billion deficit for the last year. This will put a downward pressure on the U.S. job market. A big part of the deficit is with China. The U.S. officials blame part of this deficit on the Chinese government’s refusal to allow the yuan to float freely, and accordingly, appreciate against the US dollar. Explain why this trade deficit might be considered as a contributor to the unfavorable economic situation in the US and why appreciation of Chinese currency might help to alleviate this situation.
-
Rating:
5/
Solution: ECON CT3RA - The government published the data on the U.S