When a country's import spending exceeds export spending,the country is experiencing a:

Question

Quizplus · Accepted Answer

When a country's import spending exceeds its export spending, it results in a trade deficit. The difference between import and export spending is called the balance of trade. A trade deficit indicates a negative balance of trade and means that the country is importing more goods and services than it is exporting, resulting in a net outflow of domestic currency to pay for the imports. This can have negative consequences on a country's economy, including inflation and a decrease in the value of the country's currency.

When a Country's Import Spending Exceeds Export Spending,the Country Is