What is the term used to describe a situation where a country’s imports exceed its exports?
Question and options
What is the term used to describe a situation where a country’s imports exceed its exports?
- Trade surplus
- Balance of payments
- Trade deficit
- Current account surplus
Answer and explanation
Correct answer: C - Trade deficit
When imports exceed exports the country runs a trade deficit. A trade surplus is the opposite; the balance of payments is the whole account; a current account surplus is also the opposite situation.
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