Sustained Current Account Deficits and Surpluses
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Read the article below:
Answer the following questions:
1) What is the first benefit mentioned of the 'narrowing trade gap'?
2) How far did exports and imports rise/fall?
3) What economic theory does the author not consider? (HL)
4) Why is inflation a problem of a budget surplus?
5) What is the underlying cause of the narrowing trade gap and why is this not seen as beneficial?
See if you can find more problems from the short articles below:
Marshall-Lerner and the J-Curve