Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-A trade deficit involves:
A)net flows of goods from foreign countries to the domestic government.
B)net money flows from the foreign firms to the domestic government.
C)net money flows from the domestic firms to the domestic government.
D)net money flows from the foreign firms to the domestic firms.
E)net flows of goods from foreign countries to the domestic firms.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods than it exports, meaning there are net flows of goods from foreign countries to the domestic firms.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth