Macroeconomics 9th Edition by David Colander

Exercise 1

The U.S.rade deficit was about $480 billion, or 3 percent of GDP, in 2012.ome economists argue that this gap is truly frightening because the current account deficit is the amount of money the United States must attract from abroad.f foreign investors stop buying U.S.onds and stocks, then skyrocketing interest rates, plummeting stock values, and an economic downturn will surely follow.thers see the gaping current account deficit as a sign of economic vitality.he flipside of a large trade deficit is, after all, a surplus of capital flowing into your country.
a.Is the U.S.urrent account deficit a sign of impending disaster or a sign of economic health or something in between
b.How has this unprecedented shortfall affected the U.S.conomy and how will it affect our economic future (Post-Keynesian)