The United States currently has a trade deficit with China and the rest of the world, while China currently has a trade surplus with the United States and the rest of the world.
a. What does this imply about the current account balance for the United States?
b. What does this imply about the capital and financial account balance for the United States?
c. What does this imply about the current account balance for China?
d. What does this imply about the capital and financial account balance for China?
e. What is the difference between the balance of trade and the balance of payments?