if a country has a trade deficit, which of the following must also be true? choose 1 answer: a more funds…

if a country has a trade deficit, which of the following must also be true? choose 1 answer: a more funds are moving into the country than are moving out of the country b its exports exceed its imports c more funds are moving out of the country than are moving into a country d it has a current account surplus e it has a financial account surplus

if a country has a trade deficit, which of the following must also be true? choose 1 answer: a more funds are moving into the country than are moving out of the country b its exports exceed its imports c more funds are moving out of the country than are moving into a country d it has a current account surplus e it has a financial account surplus

Answer

Brief Explanations:

A trade - deficit occurs when a country's imports exceed its exports. This implies that the country is spending more on foreign goods and services than it is earning from selling its own goods and services abroad. To pay for these extra imports, funds must flow out of the country. So, more funds are moving out of the country than are moving into it.

Answer:

C. More funds are moving out of the country than are moving into a country