Question 1
A country's trade is balanced when
◦ its imports exceeds its exports.
◦ its government expenditures are equal to its tax revenues.
◦ its net exports equal to zero.
◦ its net exports are greater than zero.
Question 2
A country has a trade deficit when
◦ its exports exceed its imports.
◦ its exports equal its imports.
◦ its exports are less than its imports.
◦ government spending is greater than tax receipts.