Question and answer
explain if a country would rather have a trade surplus or a trade deficit.
When a nation has a trade surplus, it has control over the majority of its own currency. This causes a reduction of risk for another nation selling this currency, which causes a drop in its value. [ When the currency loses value, it makes it more expensive to purchase imports, causing an even a greater imbalance. Because a trade surplus usually creates a situation where the surplus only grows
(due to the rise in the value of the nations currency making imports cheaper), there are many arguments against Milton Friedman's belief that trade imbalances will correct themselves naturally. Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time. However, a deficit has been reported and growing in the United States for the past few decades, which has some economists worried. This means that large amounts of the U.S. dollar are being held by foreign nations, which may decide to sell at any time. A large increase in dollar sales can drive the value of the currency down, making it more costly to purchase imports. ]
Expert answered|hanzyboy|Points 3898|
Question
Asked 8/24/2011 2:14:03 AM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
A market _____. exists whenever buyers and sellers exchange goods and services does not involve monetary transactions to buy goods and services only includes squares set up in towns to sell goods and services
Weegy: barter User: The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____. market share price force (More)
Question
Expert Answered
Asked 8/17/2011 4:58:47 PM
0 Answers/Comments
The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____. market share price force
Weegy: Do you have options for this? Like multiple choice? (More)
Question
Expert Answered
Asked 8/17/2011 5:01:18 PM
0 Answers/Comments
A consumer uses goods and services to _____. make products using fair trade earn money by selling them satisfy economic wants
Weegy: Hold on while I pass this to another expert (More)
Question
Expert Answered
Updated 8/17/2011 7:26:12 PM
1 Answer/Comment
A consumer uses goods and services to satisfy economic wants.
Added 8/17/2011 7:26:12 PM
This answer has been added to the Weegy Knowledgebase
25,373,229 questions answered
Popular Conversations
What is exports?
Weegy: Net Exports is the value of a country's total exports minus the value of its total imports. User: What is ...
5/31/2016 9:24:53 AM| 3 Answers
Why are closing costs a one time fee?
Weegy:
5/30/2016 12:02:23 AM| 2 Answers
What is Marasmus? User: What is kwashiorkor?
Weegy: Kwashiorkor is a childhood disease that is caused by protein deprivation. User: What is ketosis? User: ...
5/30/2016 9:38:40 AM| 2 Answers
Psilocybin is a type of __________. ...
Weegy: Psilocybin is a type of hallucinogen. User: Antibiotics kill harmful bacteria or prevent bacteria from ...
5/30/2016 5:50:06 PM| 2 Answers
Which of the following is known to increase an individual's chances ...
Weegy: Diabetes is characterized by excessively low blood sugar levels. Yes, this can be true about diabetes. User: ...
5/30/2016 8:09:40 PM| 2 Answers
(-3 - 5i)(-3 + 5i) =
Weegy: (-3 + 5i) - (7 + 9i) = -3 + 5i - 7 - 9i; = -10 - 4i User: Which of the following equations shows the ...
5/31/2016 12:10:10 AM| 2 Answers
The Sino-Soviet split was followed by an economic agreement between ...
Weegy: The Sino-Soviet split was followed by an economic agreement between the U.S. and the USSR. User: Which of ...
5/31/2016 1:01:59 AM| 2 Answers
One of the biggest risks involved in using e-mail is A. loss ...
Weegy: One of the biggest risks involved in using e-mail is junk mail. User: When addressing an envelope for ...
5/31/2016 10:05:29 AM| 2 Answers
Weegy Stuff
S
Points 736 [Total 736] Ratings 10 Comments 616 Invitations 2 Offline
S
Points 718 [Total 718] Ratings 13 Comments 588 Invitations 0 Offline
S
Points 646 [Total 646] Ratings 0 Comments 646 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 306 [Total 12558] Ratings 2 Comments 286 Invitations 0 Offline
S
L
P
P
P
Points 166 [Total 3543] Ratings 0 Comments 166 Invitations 0 Offline
S
Points 38 [Total 107] Ratings 0 Comments 38 Invitations 0 Offline
S
L
Points 29 [Total 4121] Ratings 0 Comments 29 Invitations 0 Offline
S
Points 14 [Total 345] Ratings 0 Comments 14 Invitations 0 Offline
S
Points 12 [Total 12] Ratings 1 Comments 2 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.