When a Country Runs a Trade Deficit

question 170

Multiple Choice

When a country runs a trade deficit,

• A) it must be running a budget surplus.
• B) its imports will become injections instead of leakages.
• C) its exports will become leakages instead of injections.
• D) foreigners will demand loanable funds from the country.
• E) foreigners will supply loanable funds to the country equal to its trade deficit

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