A trade deficit occurs when ______________________ Net capital inflows are negat
ID: 1210919 • Letter: A
Question
A trade deficit occurs when ______________________
Net capital inflows are negatiive when____________________________
imports are greater than exports; capital inflows are geater than capital outflows
imports are greater than exports; capital inflows are less than capital outflows
imports are less than exports; capital inflows are geater than capital outflows
imports are less than exports; capital inflows are less than capital outflows
A.imports are greater than exports; capital inflows are geater than capital outflows
B.imports are greater than exports; capital inflows are less than capital outflows
C.imports are less than exports; capital inflows are geater than capital outflows
D.imports are less than exports; capital inflows are less than capital outflows
Explanation / Answer
Option (B).
Trade deficit = Imports - Exports
Net capital inflow = Capital inflow - Capital outflow