Chronic trade deficits lead to a growing national debt.

Name: Chronic trade deficits lead to a growing national debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a country consistently imports more than it exports, this creates a trade deficit which can lead to a decrease in the value of its currency and increased borrowing from other countries. Over time, this can lead to a growing national debt as the country continues to borrow to finance its trade deficit.

Chronic Trade Deficits Lead to a Growing National Debt