A U.S. trade deficit means that

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports, which means that the value of the country's imports exceeds the value of its exports. In other words, the country is buying more from other countries than it is selling to them, resulting in a negative balance of trade. Option A is incorrect because a declining inventory of unsold goods would not necessarily result in a trade deficit. Option C is incorrect because it describes a trade surplus, where the country exports more than it imports. Option D is unrelated to the concept of trade deficits.

A U.S. Trade Deficit Means That