A trade deficit occurs when ______.
A) imports exceed exports
B) foreign-aid payments exceed exports
C) imports are sold at low profits
D) there is a net flow of money into a country

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports. This means that more money is leaving the country to pay for imports than is coming in from exports, resulting in a negative balance of trade.

A Trade Deficit Occurs When ______