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Question

Unit III Discussion Board

You overheard a group of people who were talking about interest rates at a restaurant yesterday. They mentioned that the United States was running a trade deficit. What effect would a trade deficit have on interest rates, if any? Explain.

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Solution Preview

Unfortunately our culture is to demand a much higher labor cost to product products here in the United States. For example I work for a company that sells a lot of items made of steel. Back in 2009 the Steel Union workers demanded to be paid on average about $27.00 per hour to build a lot of our products. Unfortunately we shut down our Michigan 

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