A Trade Deficit Might Signal a Problem Of

question 158

Multiple Choice

A trade deficit might signal a problem of:

• A) high unemployment.
• B) high taxes.
• C) low savings.
• D) low spending.

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Definitions:

Cash Flows

The total amounts of money being transferred into and out of a business, particularly in terms of operational, investing, and financing activities.

Financial Statement

Consolidated documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Income Statement

A document detailing a firm's income and outgoings during a certain time, ending in either a profit or a deficit.