Answered: If imports exceed exports, as in recent…

If imports exceed exports, as in recent years, then __________ exists. a trade surplus a trade deficit a trade imbalance trade disequilibrium

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 41CTQ: Will nations that are more involved in foreign trade tend to have higher trade imbalances, lower...

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Question

If imports exceed exports, as in recent years, then __________ exists.

a trade surplus

a trade deficit

a trade imbalance

trade disequilibrium

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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