The scenario in which the trade deficit slowly shrinks over time is called the
A) soft-landing scenario.
B) hard-landing scenario.
C) fair-trade scenario.
D) free-trade scenario.
E) protectionist scenario.

Question

Quizplus · Accepted Answer

The soft-landing scenario suggests a gradual reduction in trade deficits, rather than a sudden and disruptive drop. This scenario is often preferable, as it allows for a more stable adjustment and reduces the risk of economic shocks.

The Scenario in Which the Trade Deficit Slowly Shrinks Over