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    5. When a country's imports exceed its exports, what is this situation called?

    Question

    When a country's imports exceed its exports, what is

    this situation called?
    A Trade surplus Correct Answer Incorrect Answer
    B Balance of payments Correct Answer Incorrect Answer
    C Trade deficit Correct Answer Incorrect Answer
    D Fiscal deficit Correct Answer Incorrect Answer

    Solution

    Explanation: A trade deficit occurs when a country's imports exceed its exports.

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    Relevant for Exams:

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