A country that has a trade deficit:
A) imports less than it exports.
B) has a negative trade balance.
C) sells more goods at home than it sells abroad.
D) trades less than comparable countries.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country's imports exceed its exports, resulting in a negative trade balance. This means that the country is spending more on foreign goods and services than it is earning from its own exports.

A Country That Has a Trade Deficit