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If a Country Runs a Trade Deficit to Finance Increased

question 125

True/False

If a country runs a trade deficit to finance increased current consumption, it will have to increase consumption in the future to pay back its borrowings.


Definitions:

Operational Plan

A plan that identifies short-term activities to implement strategic plans.

Functional Plan

A detailed, department-specific plan that outlines the objectives, strategies, and actions for achieving functional goals.

Objective Advantage

A definite, measurable benefit that one option or situation has over others, based on factual evidence.

Strategic Thinking

The ability to analyze the present state of an organization, envision a desired future, and plan the necessary steps to achieve this future state.

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