If we import more than we export from the rest of the world we
A) must borrow an equal amount from the rest of the world.
B) can lend an equal amount to the rest of the world.
C) are running a trade surplus.
D) are helping to finance investment in the rest of the world.

Question

Quizplus · Accepted Answer

When a country imports more than it exports, it runs a trade deficit. To finance this deficit, it must borrow the difference from the rest of the world, making option A correct.

If We Import More Than We Export from the Rest