If Country A runs a trade deficit against Country B for one year, then it:

Question

Quizplus · Accepted Answer

If Country A runs a trade deficit against Country B for one year, it means that Country A is importing more goods from Country B than it is exporting to Country B. In this case, Country A must compensate Country B by exporting its excess production in the future to balance the trade. This is because a trade deficit means that Country A owes Country B money or goods, and to repay this debt, Country A must export more goods to Country B in the future. Therefore, choice B is the best answer.

If Country a Runs a Trade Deficit Against Country B