If a country's trade deficit increases, then:
A)its consumption must be falling relative to its production.
B)its consumption must be rising relative to its production.
C)it must be buying more assets from foreigners.
D)it must be selling fewer assets to foreigners.

Question

Quizplus · Accepted Answer

A trade deficit increases when a country's imports exceed its exports, indicating that the country is consuming more goods and services than it is producing.

If a Country's Trade Deficit Increases, Then