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?