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A deficit in balance of trade indicates
  • a)
    That the imports of good are less than the exports
  • b)
    That the imports of good are equal to the exports
  • c)
    That the imports of good are greater than the exports
  • d)
    None of the above
Correct answer is 'C'. Can you explain this answer?
Verified Answer
A deficit in balance of trade indicatesa)That the imports of good are ...
A trade deficit is an economic measure of international trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets. It is also referred to as a negative balance of trade (BOT).

Trade Deficit = Total Value of Imports – Total Value of Exports
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Most Upvoted Answer
A deficit in balance of trade indicatesa)That the imports of good are ...
A trade deficit is an economic measure of international trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets. It is also referred to as a negative balance of trade (BOT).
Trade Deficit = Total Value of Imports – Total Value of Exports
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A deficit in balance of trade indicatesa)That the imports of good are less than the exportsb)That the imports of good are equal to the exportsc)That the imports of good are greater than the exportsd)None of the aboveCorrect answer is 'C'. Can you explain this answer?
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