3. You are given the following information about an economy. Income: $102 billion Tax: $28 billion Consumption: $48 billion Government spending: $138...

7. Read this article about Germany’s trade surplus.

http://www.brookings.edu/blogs/ben-bernanke/posts/2015/04/03-germany-trade-surplus-problem#.VSGv-yiRQgg.facebook

a) Why has Germany’s trade surplus been increasing in recent years? ($1,000)

b) Why is Germany’s rising trade surplus a problem for the Eurozone & the global economy? ($1,000)