An unfavorable balance of trade occurs when
A) value of exports equals the value of imports
B) the balance of payments is balanced
C) the current and capital accounts in the balance of payments are equal
D) the value of exports exceeds the value of imports
E) the value of exports is less than the value of imports

Question

Quizplus · Accepted Answer

An unfavorable balance of trade, also known as a trade deficit, occurs when the value of a country's imports exceeds the value of its exports. This means the country is buying more goods and services from abroad than it is selling to foreign markets.

An Unfavorable Balance of Trade Occurs When