If the country currently has a trade deficit and it goes into recession then the trade deficit would likely to increase.
Given that the country has a trade deficit and country is going into recession.
We are required to tell the effect of economic conditions on the trade deficit.
The trade deficit would increase if the economy goes in depression because during the recession the income of the people decrease and they have less amount to spent and demand decreases. Due to decrease in demand the producers also decrease the supply of the product and the our imports decreases and the value of our currency decreases which implies that our export decreases which increases the trade deficit.
Hence if the country currently has a trade deficit and it goes into recession then the trade deficit would likely to increase.
Learn more about trade deficit at https://brainly.com/question/24473707
#SPJ4
