FOREIGN TRADE POLICY AND THE IMPACT ON AGGREGATE EXPENDITURES AND EQUILIBRIUM

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All things being equal: the lower foreign prices, the more liberal trade agreements and the higher domestic real GDP, the higher the imports become. According to a recent article in Washington (Reuters), dated November 13, 2004, written by Jonathan Nicholson, "a tax aimed at boosting savings, holds promise...
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Bush is currently proposing to reform the tax code. One idea is The Unlimited Savings Allowance Tax (USA), which is a form of consumption tax. This tax reform would be to encourage people to save or invest money and in return, they will not have to pay taxes on this income until they decide to spend the money...
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