A trade deficit allows a country to:
A)consume more than it produces.
B)produce more than it consumers.
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 allows a country to consume more than it produces because it imports more goods and services than it exports, covering the difference by borrowing or using foreign reserves.

A Trade Deficit Allows a Country To