What does a trade deficit imply? saving is greater than domestic investment and Y > C + I + G saving is greater than domestic investment and Y < C + I + G saving is less than domestic investment and Y > C + I + G saving is less than domestic investment and Y < C + I + G

What does a trade deficit imply? saving is greater than domestic investment and Y > C + I + G saving is greater than domestic investment and Y < C + I + G saving is less than domestic investment and Y > C + I + G saving is less than domestic investment and Y < C + I + G

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: International Trade And Finance

Section: Chapter Questions

Problem 12SQ

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Question

What does a trade deficit imply?

		saving is greater than domestic investment and Y > C + I + G
		saving is greater than domestic investment and Y < C + I + G
		saving is less than domestic investment and Y > C + I + G
		saving is less than domestic investment and Y < C + I + G

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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