A trade deficit occurs when _____.

A) imports are sold at low profits
B) foreign-aid payments exceed exports
C) imports exceed exports
D) there is a net flow of money into a country

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in from foreign markets.

Imports

Goods and services brought into a country from abroad for sale.

Exports

Domestically produced goods and services sold in other countries.