Question

If the value of a country's exports is greater than the value of its imports, it is:_______. a) running a trade deficit. b) running a trade surplus. c) likely to find its investment spending greater than its level of saving. d) in an economic contraction.

Answer 1

Running of trade surplus

Step-by-step explanation:

If a value of a country's exports is greater than the value of its imports, it is running a trade surplus.

Trade surplus refers to the situation in the country's exports are more than the country's import. It is also known as balance if trade.

Trade surplus have both prone as well as crones . Trade surplus helps the country is generating employment opportunities and also helps in growing the economy. But on the other hand it increases the prices and the interest rate in the economy. Trade surplus means government have money with them which can be used foe various purposes , whether for buying assets from any other country or for welfare of the people.