31. A trade deficit occurs when:?

Question

31. A trade deficit occurs when:

A. exports exceed imports.

B. imports exceed exports.

C. tariffs exceed quotas.

D. quotas exceed tariffs.

E. taxes exceed government spending.

32. An economy with a trade deficit must also have:

A. a trade deficit.

B. a budget surplus.

C. a budget deficit.

D. positive net capital inflows.

E. positive net capital outflows.

Answer 1

B. imports exceed exports.

D. positive net capital inflows.

Answer 2

31. A trade deficit occurs when:

correct answer:

B. imports exceed exports.

32. An economy with a trade deficit must also have:

correct answer:

E. positive net capital outflows.