A trade deficit occurs when:

Select one:

a. a government spends more than it receives in tax revenue.

b. a government spends less than it receives in tax revenue.

c. the value of a country's imports exceeds the value of its exports.

d. the value of a country's exports exceeds the value of its imports.

Question

Business

Elyse Armstrong

7 November, 09:06

A trade deficit occurs when:

Select one:

a. a government spends more than it receives in tax revenue.

b. a government spends less than it receives in tax revenue.

c. the value of a country's imports exceeds the value of its exports.

d. the value of a country's exports exceeds the value of its imports.

+5

Answers (1)

Know the Answer?

Aarav Oconnor · Answer 1

c. the value of a country's imports exceeds the value of its exports.

Explanation:

A trade deficit occurs when a country's value of imported goods is higher than the value of its exported goods. When exports are higher than imports, a trade surplus occurs.

A Fiscal deficit occurs when a government spends more than it receives in tax revenue. When tax revenue exceeds spending, a fiscal surplus occurs.

Therefore, the answer is alternative c.

A trade deficit occurs when:Select one:a. a government spends more than it receives in tax revenue.b. a government spends less than it receives in tax revenue.c. the value of a country's imports exceeds the value of its exports.d. the value of a country's exports exceeds the value of its imports.