Which of the following is equivalent to the trade deficit?
A) Imports $\div$ exports
B) Net capital inflow
C) Exports + imports
D) Net exports - imports
E) Exports $\times$ imports

Question

Which of the following is equivalent to the trade deficit?
A) Imports $\div$  exports
B) Net capital inflow
C) Exports + imports
D) Net exports - imports
E) Exports $\times$ imports

Quizplus · Accepted Answer

A trade deficit occurs when a country's imports exceed its exports, which is equivalent to a net capital inflow. This is because the excess of imports over exports must be financed by borrowing from foreign countries or selling domestic assets to foreign countries, both of which are forms of capital inflow.

Which of the Following Is Equivalent to the Trade Deficit ÷\div÷

Which of the Following Is Equivalent to the Trade Deficit $\div$