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Home / Questions / .U.S. trade deficit grows The Commerce Department report said that exports of goods and s

.U.S. trade deficit grows The Commerce Department report said that exports of goods and s

.U.S. trade deficit grows

The Commerce Department report said that exports of goods and services were $187.1 billion, while imports were $232.1 billion.

Source: The New York Times, July 3, 2013

Explain how the United States pays for its net export deficit.

4.The U.S. dollar depreciates. Explain which of the following events could have caused the depreciation and why.

?The Fed intervened in the foreign exchange market. Did the Fed buy or sell U.S. dollars?

?People began to expect that the U.S. dollar would depreciate.

?The U.S. interest rate differential increased.

?Foreign investment in the United States increased.

Dec 05 2019 View more View Less

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