Answered: A trade deficit means a net inflow…

A trade deficit means a net inflow of payments for goods and services outflow of goods and services inflow of goods and services excess of exports over imports

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 25RQ: Does a trade surplus mean an overall inflow of financial capital to an economy, or an overall...

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Question

A trade deficit means a net

inflow of payments for goods and services

outflow of goods and services

inflow of goods and services

excess of exports over imports

Definition Definition Situation in which a country spends more on imports than it makes through exports. When a trade deficit exists, net exports will be negative. Trade Deficit = (Imports) - (Exports)

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