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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Definitions:

M'Naghten Rule

A legal standard used to determine whether a defendant was insane at the time of committing a crime, focusing on their ability to understand right from wrong.

Insane

A term historically used to describe severe mental illness or impairment, often considered outdated and stigmatizing.

Legal Term

Language and concepts specific to the law, used in legal documents and proceedings.

Psychological Term

A word or phrase that is used within the field of psychology to describe a concept, condition, or process related to the mind and behavior.