4449EconomicsMedium
When a country has a trade deficit it?
Apurchases more goods from the rest of the world than it sells
Bpurchases more stocks and bonds from the rest of the world than it sells
Csells more stocks and bonds to the rest of the world than it purchases
Dsells more goods to the rest of the world than it purchases
Correct answer
A. purchases more goods from the rest of the world than it sells
Explanation
The correct answer is purchases more goods from the rest of the world than it sells.