Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 10: Q. 16 (page 266)

Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

Short Answer

Expert verified

Yes, imports and exports increase.

Step by step solution

01

Step1. Introduction

International trade refers to the exchange of goods and services via imports and exports. When a country sells a good/service to another, it is export and purchase of goods and services from other countries is referred to as imports.

02

Step2. Explanation

As given, US economy is booming, implying the citizens have increased income in their hands and hence their aggregate demand of products shall rise. This implies there demand for imports shall rise too, hence their would be increased imports.

Since the world economy is booming as well, foreigners shall demand more of products too. This includes US products as well, hence US's exports shall rise as well.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

If the trade deficit of the United States increases, how is the current account balance affected?

Will nations that are more involved in foreign

trade tends to have higher trade imbalances, lower trade imbalances, or is the pattern unpredictable?

What is more important, a country’s current

account balance or GDP growth? Why?

In recent decades, has the U.S. trade balance usually been in deficit, surplus, or balanced?

If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free