If a country's trade deficit declines but does not go into surplus, then:
A)its consumption must be rising relative to its production.
B)it must be selling fewer assets to foreigners.
C)it must be buying more assets from foreigners.
D)it must be producing more than it is consuming.

Question

Quizplus · Accepted Answer

A declining trade deficit implies that the country is either exporting more or importing less, which means it is selling fewer assets to foreigners to finance the deficit.

If a Country's Trade Deficit Declines but Does Not Go