A trade deficit occurs when:
A) production in an economy is less than consumption.
B) consumption in an economy is less than production.
C) spending on housing is too low.
D) interest rates are very low.
E) immigration is restricted.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country's imports exceed its exports, which typically happens when production in an economy is less than consumption, leading to increased imports to meet the demand.

A Trade Deficit Occurs When