It may be misleading to label a trade deficit as "unfavourable" or "adverse" because:
A)the multiplier does not apply to a trade deficit.
B)it increases our aggregate output and employment.
C)Canadian consumers benefit from a trade deficit during the period it occurs.
D)all of the above reasons.

Question

Quizplus · Accepted Answer

A trade deficit allows consumers to access a greater variety of goods and services, often at lower prices, which can be beneficial during the period it occurs.

It May Be Misleading to Label a Trade Deficit as "Unfavourable