Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

question 15

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-A trade deficit involves:

• A)net flows of goods from foreign countries to the domestic government.
• B)net money flows from the foreign firms to the domestic government.
• C)net money flows from the domestic firms to the domestic government.
• D)net money flows from the foreign firms to the domestic firms.
• E)net flows of goods from foreign countries to the domestic firms.

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Definitions:

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