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

Question

Quizplus · Accepted Answer

A goods trade deficit occurs when a country imports more goods than it exports, resulting in a negative balance of trade. The other answer choices are incorrect because a current account includes both goods and services, not just goods; a capital account imbalance refers to a difference in financial flows in and out of a country; and a weakening of currency can be caused by various factors beyond just trade imbalances.

If Imports of Goods Are Greater Than Exports of Goods