A deficit in a country's balance of trade suggests
A) excessive investment in that country by foreign firms
B) the balance of payments is in disequilibrium
C) imports of goods and services exceed exports
D) income paid foreign nationals exceeds domestic income

Question

Quizplus · Accepted Answer

A deficit in a country's balance of trade means that the value of imports of goods and services exceeds the value of exports. This indicates that the country is importing more than it is exporting, which can lead to a negative impact on the country's economy.

A Deficit in a Country's Balance of Trade Suggests