Asked by Tatum Sobota on May 19, 2024
Verified
The term trade deficit refers to a situation where
A) government spending (including transfer payments) exceeds tax revenues.
B) a nation's purchases from other nations are less than its sales to other nations.
C) assets are less than liabilities.
D) exports are less than imports.
Trade Deficit
A situation where a country's imports of goods and services exceed its exports, indicating more money leaving the economy than entering it.
Exports
The act of selling goods or services produced in one country to other countries.
- Understand the balance of trade and the concept of trade deficits.
Verified Answer
BD
Britney DaltonMay 21, 2024
Final Answer :
D
Explanation :
A trade deficit occurs when a country's imports exceed its exports.
Learning Objectives
- Understand the balance of trade and the concept of trade deficits.