I want assistance on just getting started with each question as to which angle to take and what resources to use.
Question 1. What has caused the U.S. run a merchandise trade deficit year after year since the early 1980s?
Question 2. Is the current account a deficit problem? Explain.
Question 3. Is the trend of the international investment position of the U.S. problematic? Why or why not?
Question 4. How is the current account related to a country's business cycle?
Question 5. What is the relationship between a country's net financial inflow and its current account?
Question 6. How does the U.S make adjustments for the balance of payment issues?