Macroeconomics 9th Edition by David Colander

Exercise 22

You observe that over the past decade a country's trade deficit has risen.
a.What monetary or fiscal policies might have led to such a result
b.You also observe that interest rates have steadily risen along with a rise in the exchange rate.hat policies would lead to this result
c.Could another explanation be that people in other countries wanted to hold lots of that country's debt