When a country imports more than it exports, it has a:
A) trade deficit.
B) trade surplus.
C) zero trade balance.
D) current account deficit.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade. This means that more money is flowing out of the country to pay for imports than is coming in from exports, leading to a current account deficit.

When a Country Imports More Than It Exports, It Has