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14 February, 11:56

A trade deficit occurs when:

Select one:

a. a government spends more than it receives in tax revenue.

b. a government spends less than it receives in tax revenue.

c. the value of a country's imports exceeds the value of its exports.

d. the value of a country's exports exceeds the value of its imports.

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  1. 14 February, 12:12
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    c. the value of a country's imports exceeds the value of its exports.

    Explanation:

    A trade deficit occurs when a country's value of imported goods is higher than the value of its exported goods. When exports are higher than imports, a trade surplus occurs.

    A Fiscal deficit occurs when a government spends more than it receives in tax revenue. When tax revenue exceeds spending, a fiscal surplus occurs.

    Therefore, the answer is alternative c.
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