Which of the Following Is Equivalent to the Trade Deficit

question 37

Multiple Choice

Which of the following is equivalent to the trade deficit?

• A) imports ÷ exports
• B) net capital inflow
• C) exports + imports
• D) net exports - imports

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Definitions:

Price-Elastic

Refers to the degree to which the demand for a product changes in response to a change in its price.

Substitutes

Goods or services that can replace each other in usage, where an increase in price of one leads to an increase in demand for the other.

Price Elasticity

An appraisal of how demand levels are impacted by price changes of a good.

Movie Streaming

The practice of watching movies over the internet without downloading them, typically through subscription services or on-demand platforms.