Trade Deficits: Capital Deepening or Consumption? Suppose a country that had balanced trade began to run a trade deficit. At the same time, consumption as a share of GDP increased but the investment...

Trade Deficits: Capital Deepening or Consumption? Suppose a country that had balanced trade began to run a trade deficit. At the same time, consumption as a share of GDP increased but the investment share did not. Do you think there was an increase in capital deepening?