The Macroeconomic Interpretation of a Trade Deficit for a Country

question 13

Multiple Choice

The macroeconomic interpretation of a trade deficit for a country utilizes which one of the following expressions (where Y = national income, C = consumption, I = investment, G = government spending on goods and services, X = exports, and M = imports) ?

• A) Y + (C + I + G) = (X - M)
• B) (C + I + G) - Y = (X - M)
• C) (C + I) - G - Y = (M - X)
• D) Y - (C + I + G) = (X - M)

---

Definitions:

Time and Space

Fundamental concepts in various disciplines, representing the dimensions in which events occur and matter exists.

Harold Innis

A Canadian economist and professor known for his contributions to communication theory and the study of Canadian economic history.

Society

A collection of people engaged in continuous social interaction or a substantial social group inhabiting the same geographic or social area, usually under the same political rule and common cultural norms.

Statistics Canada

The national statistical office of Canada, responsible for producing data on the Canadian economy, society, and environment.