Economic – Deficit (Order 1)

| February 4, 2015

In Chapter 10, Carbaugh Asks, “Can the United States Continue to Run Current Account Deficits Indefinitely?” Since in the long term, the obvious answer is no, perhaps the question should be rephrased to ask the following:

· Does the United States’ unique position in the world economy allow the country to safely run persistent external deficits?

· Can persistent U.S. deficits in the current and payments accounts be adjusted without bringing about economic recession or crisis?

In a 5 page (12-point font, double-spaced) essay, summarize and critically evaluate the main positions provided on this in Carbaugh’s Chapter 10 and the Deutsche Bank Research piece also assigned as reading for this module.

The paper outline should be as follow:

Introduction:

· Current account deficit (Surplus) mean. (Net foreign Investment and the current account balance).

Body:

· Impact of capital flows on the current account.

· Is a current account deficit a problem?

· Business cycles, Economic growth, and the current account.

· How the US borrowed at a very low cost?

· Do current account deficit cost Americans jobs?

· Can persistent U.S deficit in the current and payments accounts be adjusted without bringing about economic recession or crisis?

Conclusion:

· Can the United States continue to run current account deficit indefinitely?

· My point view.

References:

· Use 5 references in addition to the text book.

……………………………

Requirements:

· APA style critical thinking.

· Similarity Percentage should be less than 10%.

· 2 citations.

· 5 references in addition to the text book.

· 5 pages.

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In Chapter 10, Carbaugh Asks, "Can the United States Continue to Run Current Account...
international business

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