Other things the same,a country could move from having a trade surplus to having a trade deficit if either
A)saving rose or domestic investment rose.
B)saving rose or domestic investment fell.
C)saving fell or domestic investment rose.
D)saving fell or domestic investment fell.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more than it exports. If saving falls, there is less domestic capital available, potentially increasing reliance on foreign capital, leading to a trade deficit. Similarly, if domestic investment rises, it may require more foreign capital, also leading to a trade deficit.

Other Things the Same,a Country Could Move from Having a Trade