Why would a government most likely be concerned about its country carrying a trade deficit?
A) A trade deficit means that the country's productivity is low.
B) A trade deficit means local companies do not have enough competition.
C) A trade deficit ties up money that could be used for economic growth.
D) A trade deficit decreases demand for goods overall.
E) A trade deficit means that consumers do not have enough purchasing power.

Question

Quizplus · Accepted Answer

C) A trade deficit implies a carrying of debt; when there is a trade deficit imports are not paid for in full.

Why Would a Government Most Likely Be Concerned About Its