When a country has a trade deficit it ?
Correct answer: B. purchases more goods from the rest of the world than it sells
- A. purchases more stocks and bonds from the rest of the world than it sells
- B. purchases more goods from the rest of the world than it sells
- C. sells more goods to the rest of the world than it purchases
- D. sells more stocks and bonds to the rest of the world than it purchases
Explanation
A trade deficit means the value of goods purchased from abroad exceeds the value of goods sold abroad. The country therefore imports more merchandise than it exports.
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