Question

When the value of a nation's imports exceeds the value of that nation's exports, the nation is said to have:

a) A trade surplus
b) A budget surplus
c) A trade deficit
d) A balanced trade

Answer 1

A nation is said to have a trade deficit when the value of its imports exceeds the value of its exports.

Step-by-step explanation:

The nation is said to have a trade deficit when the value of its imports exceeds the value of its exports. A trade deficit occurs when a country imports more goods and services than it exports. For example, if a country imports $1 million worth of goods and services from other countries but only exports $800,000 worth of goods and services, it has a trade deficit of $200,000.