Asked by Elizabeth Barkhudaryan on May 19, 2024
Verified
When a country exports fewer goods and services than it imports,this is called
A) the terms of trade.
B) the exchange rate.
C) a balance of trade deficit.
D) a balance of trade surplus.
Balance of Trade Deficit
A situation where a country's imports of goods and services exceed its exports, leading to more money leaving the country than coming in.
Exports Fewer
A situation where a country sells fewer goods or services abroad than in previous periods.
- Pinpoint the factors leading to trade deficits and understand their economic impacts.
Verified Answer
PJ
patrice jonesMay 23, 2024
Final Answer :
C
Explanation :
A balance of trade deficit occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade. In other words, the value of a country's imports exceeds the value of its exports.
Learning Objectives
- Pinpoint the factors leading to trade deficits and understand their economic impacts.