genyjoannerubiera
24.05.2021 •
English
Why does Aven like to play soccer compared to other sports
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Ответ:
answer:
it is not a big deal, it all balances out ~ pros
according to nobel prize-winning economist, milton friedman, trade deficits are not harmful because the currency will always comes back to the country in some form or another.
trade deficits will be naturally be resolved either by currency devaluations, increased foreign ownership of assets or other forms of foreign investment.
a trade deficit is an indication that the currency is desired.
the current method of calculating the trade deficit does not fully account for income derived from foreign sources or for us ownership of foreign stocks.
it is a big problem ~ cons
some economists believe that our gdp and employment can be hurt by large deficits.
in the real world, currencies are not as free to float in value as some economists' claim, instead they are often manipulated by some governments (in our current situation, china.) to their benefit.
trade deficits lead to a lowering in the value of the dollar compared to other currencies. this raises the costs of imported goods and causes inflation.
it leads to more foreign ownership of our assets and companies.
in the short term, a trade deficit is not bad but sustained deficits will hurt future generations.
explanation: