Which of the following is true when a country is experiencing a trade deficit?

Question

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A trade deficit occurs when the value of a country's imports exceeds the value of its exports. This means that the country is consuming more foreign goods than it is producing and exporting of its own goods. As a result, the demand for domestic goods is less than the domestic demand for goods, as consumers are choosing to purchase more foreign products. A and B are incorrect because they assume that domestic demand for goods is greater than or equal to the total demand for goods, regardless of whether they are domestic or foreign. D and E are unrelated to trade deficits and refer to fiscal policy.

Which of the Following Is True When a Country Is