A trade deficit allows a country to:
A)consume more than it produces.
B)produce more than it consumes.
C)produce up to the level of desired consumption.
D)consume up to the level of potential production.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports, allowing it to consume more than it produces. This is because the country can buy goods and services from abroad to meet its consumption needs, even if domestic production is lower.

A Trade Deficit Allows a Country To