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Balance of Payments (Source: Gwartney Chapter 19-5): no minimum word requirement.
A) Because the United States purchases more cars, stereos, and other goods from Japan than Japan purchases from the United States, it is often said that the United States has a “trade deficit” with Japan. Does this mean that the U.S. Balance of Payments is running a deficit?
B) How would you more accurately characterize the effect that trade with Japan has on the Balance of Payments?

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