Question

All of the following can be associated with a high trade deficit EXCEPT __________.

developing countries
a drop in prices in order to pay for imports
more manufactured goods are imported than raw materials are exported
possible inflation

Answer 1

Good Morning!

Developing countries, imports of manufactured goods and inflation are clearly possibilities of a deficit in the trade rate. The fall in price to pay for imports, however, is impossible to be associated, since there is not a drop in price, but an increase.
a drop in prices in order to pay for imports

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