Trade deficits always lead to future decreases in
Trade deficits always lead to future decreases in consumption if the trade deficits:
a. support current investment.
b. support current consumption.
c. support either current investment or consumption.
d. require borrowing from abroad.
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suppose the economy is in the long-run equilibriuma draw a diagram to illustrate the state of the economy be sure to
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trade deficits always lead to future decreases in consumption if the trade deficitsa support current investmentb
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