A nation's trade deficit will tend to shrink when

Name: A nation's trade deficit will tend to shrink when
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When a nation's economy is shrinking, imports typically decrease due to lower consumer and business spending, which can reduce the trade deficit. Additionally, if the investment environment is less attractive to foreigners, it may lead to a decrease in foreign capital inflows, which can also contribute to a reduction in the trade deficit.

A Nation's Trade Deficit Will Tend to Shrink When