Some economists believe the budget deficit is directly linked to the trade deficit through real interest rates and the international value of the dollar.

Name: Some economists believe the budget deficit is directly linked to the trade deficit through real interest rates and the international value of the dollar.
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Some economists argue that the budget deficit leads to higher real interest rates, which makes investment in the US more attractive, leading to a stronger dollar and larger trade deficit.

Some Economists Believe the Budget Deficit Is Directly Linked to the Trade