A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.
Laissez faire model was inspired by John Stuart Mill's book "Principles of Political Economy" (1848). This model states that the government should not be heavily involved in the market, and should have a hands off approach.
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Answer:
A. a goods trade deficit
Explanation:
The current account represent the trade balance (export less import) plus
the net income (person receiving interest, rent or wages from aboard less person and companies paying foreingers) and
the direct payment. ( remittances from wroker to US)
As the US is one of the most open-economies in the world the mayority of this deficit comes from import of good and services from aboard.
Another factor, is that US company invest around the world thus, the net income should be positive.
And becuase the US economy is strong as opposite of Mexico or other Latin America countries, the average US employee abroard will not send their wages to support his family.
Thus, we should ensure the deficit comes from a negative trade deficit.
Because of the last recession, many companies decreased financial donations but encouraged their employees to volunteer their times to corporate social initiatives and project.
This way, they can gain the public favor by putting it on their corporate social responsibility.
