Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 25, Problem 1DQ
To determine
The impact of increasing imports rather than exports.
Expert Solution & Answer
Explanation of Solution
Net export is the additional value of export over the imports, which can be calculated by subtracting imports from exports. When the import is greater than exports, it shows
Economics Concept Introduction
Trade deficit: Trade deficit refers to a situation where the imports of a country are higher than the exports by the country.
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Students have asked these similar questions
Which of the following could be a cause for imports not decreasing despite policy measures taken?
Select One:
a) Imports constitute consumer goods
b) Demand is elastic
c) Goods are luxuries
d) Imports constitutes capital goods
e) Export demand is inelastic
In the country of Mordor, the government spent $100 million on swords. Prices do not rise at all, and GDP increases by $200 million. People in Mordor
spent 70% of every dollar they received. What percent of every dollar did they spend on imported goods and services? If you think the answer is 29%, write
29. If you think the answer is zero percent, write 0.
Answer:
Why are aircraft one of the United States' greatest exports?
The demand for aircraft is high.
The US has a great deal of technological knowledge.
The American dollar is cheap compared to other currencies.
Chapter 25 Solutions
Economics: Principles & Policy
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