When U.S. merchandise imports are greater than exports, the United States is running a
A)trade deficit.
B)trade surplus.
C)trade balance.
D)capital account surplus.

Question

Quizplus · Accepted Answer

When U.S. merchandise imports are greater than exports, it means that the United States is purchasing more goods from other countries than it is selling to them. This results in a trade deficit, which is the opposite of a trade surplus (when exports are greater than imports) and a trade balance (when exports and imports are roughly equal). Capital account surplus is a separate concept related to the flow of money between countries.

When US Merchandise Imports Are Greater Than Exports, the United States