For which of the countries described is a trade deficit most beneficial? A country with a lower-than-optimal savings rate. A country with a strong preference for imported consumption goods. No country benefits from a trade deficit. A country aggressively purchasing capital goods.

Question

Jagger Horn

Business

17 October, 22:24

For which of the countries described is a trade deficit most beneficial? A country with a lower-than-optimal savings rate. A country with a strong preference for imported consumption goods. No country benefits from a trade deficit. A country aggressively purchasing capital goods.

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Answers (1)

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Emilee Rivers · Answer 1

Answer:A country aggressively purchasing capital goods.

Explanation:

Capital goods are used as raw materials for the productions of other goods.

The dominance of a country in purchasing capital goods which leads to deficit in his balance of payment may not connotes negativity for the goods can be used to produce consumer goods for local consumption or export which will on the long run reduce the deficit.