1- How does the deficit increase affect the exchange rate?
2- The US has used the foreign borrowed money inunproductive expenses - What some of the US unproductive expenses?Please provide at least three examples.
3- US debt owned by foreigners increased:Which foreigner have increased US debt ownership as a result of the US CA deficit? Give three examples.
4- Exchange rate play big role in increasing US exports, the low exchange rate will enhance exports,please explain the consequences of the exchange rate on the US CA deficit
5- Historical examples showed that trade deficit decreased coincides with a fall in GDP but it doesn’t slow economic growth.- Use historical examples. eg at least two years when a slow decrease in a CA deficit did not slow growth and what happened
6- US gained investor confidence in 2008 Recession.How, give examples.