An unfavourable trade balance is called a(n)

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports, leading to an unfavourable balance of trade. Choice A, balance of trade, is an overall term for the difference between a country's exports and imports. Choice C, currency devaluation, refers to a deliberate decrease in the value of a country's currency to make exports more attractive and imports more expensive. Choice D, balance of payments, refers to all of a country's transactions with other countries, including trade, investments, and transfers. Choice E, import balance, is not a commonly used term in economics.

An Unfavourable Trade Balance Is Called A(n)