U.S. Dec. Trade Deficit Narrows to $44.3 Billion

The video discusses changes in trade rhetoric under President Trump, focusing on trade balance and the administration's views. It explores the trade deficit, domestic demand, and the border adjustment tax, including its potential effects and economists' skepticism. The video also addresses the challenges of influencing trade balance and achieving growth goals.

What is the administration's view on a negative trade balance?

• It is seen as a positive economic indicator.

• It is considered a bad thing by itself.

• It is irrelevant to economic policy.

• It is a sign of strong domestic demand.

What is the primary economic theory that supports buying goods from other countries?

• Theory of Economic Isolation

• Theory of Trade Surplus

• Theory of Comparative Advantage

• Theory of Absolute Advantage

What is one of the proposed solutions to help U.S. exporters?

• Reducing corporate taxes

• Implementing a border adjustment tax

• Subsidizing domestic production

• Increasing import tariffs

What is a potential risk of the border adjustment tax according to economists?

• It could lead to a trade surplus.

• It might cause the dollar to depreciate.

• It could result in massive defaults due to dollar appreciation.

• It may increase domestic inflation.

Which component of GDP is considered the hardest to influence?

• Government spending

• Consumption

• Investment

• Net trade