If the country of Deficitland is experiencing trade deficits, they are more likely to cut imports of
A)beef
B)cocoa
C)coffee
D)capital goods
E)soybeans

Question

Quizplus · Accepted Answer

Capital goods refer to machinery, equipment, and other durable goods used to produce other goods and services. Cutting imports of capital goods could be an effective strategy to reduce the trade deficit, as it would reduce the amount of foreign investments and technology transfers.

If the Country of Deficitland Is Experiencing Trade Deficits, They