ECON 231 Lecture Notes - Money Supply, Financial Institution, Non-Governmental Organization
16 Oct 2011
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Homework #8: successive us government representatives over the 1990s and early 2000s have attributed the. American trade deficit with china to be all about unfair chinese trade practices that restrict market access to american exporters. Use the national income identity to propose a different explanation for the. American current account deficit before the 2007 housing market crisis. Y = c + i + g + nx. Y = c(y - t) + i(r) + g + nx. All at the expense of an increasing deficit and debt as the ratio to gdp continued to grow faster than the economy was. Usually an increase in g is associated with an increase in y, but since the increase was not in the us economy (in a relative perspective) the economy saw little benefit from the expenditures. If canadians are expecting inflation to be higher, the interest rates will be adjusted lower for compensation, and stabilization of the economy.
