All else the same, a trade deficit:
A)increases GDP
B)decreases GDP
C)have no impact on GDP
D)two of the above
E)not enough information to tell Same as prior item; do not care for "two of the above" items without specific reference to which items.

Question

Quizplus · Accepted Answer

A trade deficit means that a country is importing more goods and services than it is exporting, which means that there is a net outflow of money. This means that there is less money being spent on domestically produced goods and services, which can lead to a decrease in GDP.

All Else the Same, a Trade Deficit