A trade deficit involves:
A)net flows of goods from foreign countries to the home country government.
B)net money flows from the foreign country firms to the home country government.
C)net money flows from the domestic firms to the home country government.
D)net money flows from the foreign country firms to the home country.
E)net flows of goods from foreign countries to the firms of the home country.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports. This means that there are net flows of goods from foreign countries to the firms of the home country. This can result in a net outflow of money from the domestic economy and may have an impact on the country's trade balance and overall economic performance.

A Trade Deficit Involves