A trade deficit occurs when

exports of goods are greater than imports of goodsCorrect answerYour answerthe government spends more than it earnsCorrect answerYour answerimports of goods are greater than exports of goodsCorrect answerYour answerforeign investment fallsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Balance of trade = exports − imports of goods; a negative value is a trade deficit.

Concept: Trade deficit
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsBalance of trade and current account balance

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Ten questions from Balance of Payments, at your own pace.

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Ten questions from Balance of Payments, at your own pace.

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A trade deficit occurs when

Explanation