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Which of the following is a consequence of a trade deficit? (2019)

Practice Questions

1 question
Q1
Which of the following is a consequence of a trade deficit? (2019)
  1. Increased foreign investment
  2. Decreased national debt
  3. Depreciation of the national currency
  4. Increased exports

Questions & Step-by-step Solutions

1 item
Q
Q: Which of the following is a consequence of a trade deficit? (2019)
Solution: A trade deficit can lead to the depreciation of the national currency as more currency is sold to purchase foreign goods.
Steps: 0

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