PRC-3 · Chapter 20 · Question 25 of 30
If a country imports Rs. 100 billion worth of physical merchandise but only exports Rs. 60 billion worth of physical merchandise, the country is officially experiencing a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Trade deficit (Deficit on the balance of trade in goods)
Explanation
A trade deficit occurs purely when the financial value of a nation's imported physical goods strictly exceeds the value of its exported physical goods.
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