Trade deficits are synonymous with

Question

Quizplus · Accepted Answer

Trade deficits refer to a situation where a country imports more goods and services than it exports, leading to a current account deficit. This means that the country is spending more on foreign goods and services than it is earning from the sale of its own goods and services to other countries. It is not synonymous with balance of payments deficits or capital account deficits, although these can be related. Additionally, it is not indicative of low domestic savings, as a trade deficit can occur even in countries with high rates of savings.

Trade Deficits Are Synonymous with