Explain how the country might sustain the deficit over time


Problem

1. Distinguish between a trade deficit and a current account deficit.

2. A developing country operates a trade deficit because of large imports of capital equipment. Explain how this country might sustain this deficit over time.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain how the country might sustain the deficit over time
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