Figure 19.2: Foreign Assets in the U.S.
-Consider the figure above, which shows net exports (BOPCAA), the federal government's budget deficit (FYFSD), and net capital outflows (-BOPIA). Explain how these are related. Between 2008 and 2010, the budget deficit grew from about -$200 billion to over -$1.4 trillion (not shown). What impact will this have on the net exports?

Question

Figure 19.2: Foreign Assets in the U.S. 
-Consider the figure above, which shows net exports (BOPCAA), the federal government's budget deficit (FYFSD), and net capital outflows (-BOPIA). Explain how these are related. Between 2008 and 2010, the budget deficit grew from about -$200 billion to over -$1.4 trillion (not shown). What impact will this have on the net exports?

Quizplus · Accepted Answer

The Answer of Figure 19.2: Foreign Assets in the U.S. 
-Consider the figure above, which shows net exports (BOPCAA), the federal government's budget deficit (FYFSD), and net capital outflows (-BOPIA). Explain how these are related. Between 2008 and 2010, the budget deficit grew from about -$200 billion to over -$1.4 trillion (not shown). What impact will this have on the net exports?