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Question: President Trump has complained that the U.S. trade deficit is too large. Based on the uses-of-saving identity (S = 1 + NX), how could the U.S. trade deficit be reduced (what are the options)? Explain fully and then illustrate your argument using the two-country large-open economy model of the goods market.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92599354

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