Suppose that the United States were running a current-account deficit. How would each of the following changes influence the size of the current-account deficit?
a. a recession in the United States
b. a decline in the attractiveness of investment opportunities in theUnited States
c. an improvement in investment opportunities abroad10. If taxes imposed on personal and corporate income increased substantially in the United States and the monetary policy of the United States was less stable and more inflationary than other countries, how would these policies affect the trade deficit? Why?