If a Country Has a Trade Deficit Then

question 155

Multiple Choice

If a country has a trade deficit then

• A)S > I and Y > C + I + G.
• B)S > I and Y < C + I + G.
• C)S < I and Y > C + I + G.
• D)S < I and Y < C + I + G.

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Definitions:

Price Decreases

A reduction in the cost at which goods or services are sold to consumers or businesses.

Consumers

Individuals or organizations that purchase or use goods and services for personal use or consumption.

Pricing Decisions

The process of setting the price for a product or service, influenced by costs, competition, market demand, and perceived value.

Create Value

The process of enhancing a product or service's worth by improving its appeal to customers, thereby increasing its market value or consumer demand.