Assignment 7: There are 5 questions in total adding up to 100pts for this week<\/strong><\/p>\n

1.Consider two headlines: \u201cForeigners are bringing bags of money to the U.S. to grab property\u201d vs. \u201cRecord U.S. trade deficit.\u201d How can both be true simultaneously?<\/p>\n

2.Consider two headlines: \u201cMoney is fleeing the U.S. faster than ever\u201d vs. \u201cRecord U.S. trade surplus.\u201d How can both be true simultaneously? EXPLAIN<\/strong><\/p>\n

Question 3.<\/u><\/strong><\/p>\n

In the chapter, two stories about the deficit are told: \u201cthe great place to invest\u201d story and the \u201cfoolishly saving too little\u201d story. In the following examples, which is more like the \u201cgreat place to invest\u201d story and which is more like the \u201cfoolishly saving too little\u201d story? EXPLAIN<\/strong><\/p>\n

1.Goofus uses his student loan money to buy a nice flat-screen TV and can\u2019t afford most of his textbooks. Gallant uses his student loan money to buy his textbooks and coffee that keeps him awake during study sessions.<\/p>\n

2.Carter borrows money from his dad to attend the right parties, make useful industry connections, and build his career. Ernest borrows money from his dad to attend fun parties, meet fun people, and, well, that\u2019s about it.<\/p>\n

3.America 1 borrows money to invest in her future. America 2 borrows money to pay for a spending binge.<\/p>\n

Question 4.<\/u><\/strong><\/p>\n

Nobel Laureate Robert Solow once jokingly noted, \u201cI have a chronic [trade] deficit with my barber, who doesn\u2019t buy a darned thing from me.\u201d Is this a problem? Why or why not? How does this relate to the U.S.\u2013China, U.S.\u2013Mexico, and U.S.\u2013Japan trade deficits? EXPLAIN<\/strong><\/p>\n

Question 5.<\/u><\/strong><\/p>\n

At Christmas, five-year-old Gwen runs a massive trade deficit with her parents: She \u201cexports\u201d only a wrapped candy cane to her parents, but she \u201cimports\u201d a massive number of video games, dolls, and pairs of socks. EXPLAIN<\/strong><\/p>\n

1.Is this trade deficit a good thing for Gwen?<\/p>\n

2.When Gwen turns 25, her parents insist on being repaid for all those years of Christmas presents\u2014that is, they require her to run a \u201ctrade surplus.\u201d Is this \u201ctrade surplus\u201d good news for Gwen? Why or why not?<\/p>\n

\n
• Modern Principles of Economics<\/i>, 3rd Edition (New York: Worth Publishers, 2016), Tyler Cowen and Alex Tabarrock<\/li>\n
• Please show all work.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

  Assignment 7: There are 5 questions in total adding up to 100pts for this week 1.Consider two headlines: \u201cForeigners are bringing bags of money to the U.S. to grab property\u201d vs. \u201cRecord U.S. trade deficit.\u201d How can both be true simultaneously? 2.Consider two headlines: \u201cMoney is fleeing the U.S. faster than ever\u201d vs. \u201cRecord U.S. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/147548"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=147548"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/147548\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=147548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=147548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=147548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}