Suppose a country's net exports equal $0.If the volume of imports increases without any change in the volume of exports,the country will experience a ________.

Question

Quizplus · Accepted Answer

If the volume of imports increases without any change in the volume of exports, the country will be importing more goods and services than it is exporting, which means the country will have to spend more money on imports than it is earning through exports. This leads to a deficit in the balance of trade, also known as a trade deficit.

Suppose a Country's Net Exports Equal $0