Economics question about stimulating the domestic economy?

Nicki H · #1 (**permalink**) 04-20-2008, 04:00 AM

I have to explain and illustrate this quote:

"Policies that stimulate the domestic economy tend to cause a balance of trade deficit"

I'm just not sure how to start this or what this quote even means. Can someone help me get started?

clayton j · #2 (**permalink**) 04-20-2008, 04:03 AM

Statements can be both confusing and misleading. There are so many variables in the matrix of Industrial and Technical economics that the learning curve is on a constant incline. Policy can stimulate domestic growth. It is a politically correct statement. The issue becomes how is the growth to occur and who participates in the process.

$300 stimulus payments divert people in need from questioning why isn't the payment $3,000. Policy can also insult the intelligence of anyone with a moderate education and intellect.

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