Trade deficit vs. Budget deficit

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  Y = C + G + I + X - M Y = C + S + T Budget Deficit = G - T Disposable Income (DY) = Y - T Private Savings = DY - C From the problem we have Y = 5200, C = 4100, DY = 4400, Budget Deficit = 150, Trade Deficit = M - X = 110.

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• How budget deficiets affect foreign trade deficits

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• Should the U.S. federal budget be balanced every year

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• GDP calculator

  Remember Xn is net exports (it's negative when there is a deficit like we have now). Trade deficit in the US is not necessarily bad for the economy.

• Trade deficit and interest rates

  A trade deficit occurs when imports are higher than exports. That is, a negative balance of trade. A government budget deficit is when the government spends more than it receives in tax revenue. b. False.