All else the same, a trade deficit:
A)increases GDP
B)decreases GDP
C)have no impact on GDP
D)none of the above

Name: All else the same, a trade deficit: A)increases GDP B)decreases GDP C)have no impact on GDP D)none of the above
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Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports. This means that there is a net outflow of money from the country, which can decrease GDP as it indicates a decrease in economic activity within the country.

All Else the Same, a Trade Deficit