Question

Which of these BEST describes a situation in which a country has a "trade deficit"? A) their inflation exceeds 1% Eliminate B) their unemployment exceeds 6% C) their exports exceed their imports D) their imports exceed their exports

Answer 1

D) their imports exceed their exports

Answer 2

Answer:

(D) their imports exceed their exports.

Explanation:

Trade deficit, simply put is an economic situation whereby a country imports more than it exports.

Trade deficit can be calculated by subtracting the value of goods imported from the value of goods exported. Trade deficit decreases gross domestic profit (GDP). There must be a balance of trade to favour the GDP.