If goods imports are greater than goods exports, the nation is experiencing a:

Question

Quizplus · Accepted Answer

A goods trade deficit occurs when a nation's imports of goods exceed its exports of goods. It is a specific type of current account imbalance, which refers to the difference between a country's exports and imports of goods and services. A capital account imbalance refers to the difference between capital inflows and outflows, and a weakening of a currency can be a consequence of a trade deficit, but not necessarily. The growth of foreign reserves is not necessarily linked to a trade deficit.

If Goods Imports Are Greater Than Goods Exports, the Nation