An unfavorable balance of trade occurs when
A) exports are greater than imports.
B) imports are greater than exports.
C) the total outflow of money is greater than the total inflow of money.
D) the total outflow of money is less than the total inflow of money.
E) exports equal imports.

Question

Quizplus · Accepted Answer

An unfavorable balance of trade occurs when imports are greater than exports, meaning more money is flowing out of the country than coming in. This can lead to a trade deficit and put pressure on a country's currency exchange rates.

An Unfavorable Balance of Trade Occurs When