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
20,220,191 questions answered
Popular Conversations
Evaluate (x + y)0 for x = 4 and y = 3.
Weegy: So what would your question be? User: Evaluate (x + y)^0 for x = 4 and y = 3.0 1 2 7 Weegy: Yes , hello ...
4/1/2015 1:07:33 PM| 6 Answers
How many terms are in the polynomial abcd + e - h ...
Weegy: 2n^3 + 4n^2 - 7 + (-n^3 - 8n - 2) = 2n^3 - n^3 + 4n^2 - 8n - 7 - 2 = n^3 + 4n^2 - 8n - 9 User: Select the ...
4/1/2015 11:53:01 AM| 3 Answers
Simplify. 1.5m 7(-4m 5)2
Weegy: The simplified expression of 1.5m^7(-4m^5)^2 is: 24. m^17. User: Simplify. (y 3)5 · y 4 User: What is the ...
4/1/2015 11:55:45 AM| 3 Answers
Find the value of 21 + 4(32 - 5). 25 37 100
Weegy: 129 User: Which of the following expressions is equivalent to 6m - 10? 2(3m + 5) -2(5 - 3m) 2(3m - 10)
4/1/2015 4:53:11 PM| 3 Answers
Which kind of clause modifies adjectives, verbs, or ...
Weegy: Adjective clause modifies nouns or pronoun. User: Identify the subordinate clause. Marshall calls a foul ...
4/1/2015 11:10:20 AM| 2 Answers
Simplify. 1.5m^7(-4m^5)^2
Weegy: The simplified expression of 1.5m^7(-4m^5)^2 is: 24. m^17. User: Simplify. (fg)9 User: Find the ...
4/1/2015 11:28:26 AM| 2 Answers
Simplify. y^-3 User: Simplify. (-2)^-3
Weegy: - 2.75 < -3 is a false statement.
4/1/2015 3:47:37 PM| 2 Answers
Weegy Stuff
S
L
Points 55 [Total 1632]| Ratings 0| Comments 55| Invitations 0|Offline
S
L
P
L
P
P
P
Points 48 [Total 9208]| Ratings 0| Comments 48| Invitations 0|Offline
S
Points 21 [Total 588]| Ratings 0| Comments 21| Invitations 0|Online
S
P
C
L
P
L
1
P
Points 7 [Total 7884]| Ratings 0| Comments 7| Invitations 0|Offline
S
L
Points 6 [Total 3609]| Ratings 0| Comments 6| Invitations 0|Offline
S
L
Points 1 [Total 1073]| Ratings 0| Comments 1| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
S
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
S
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.