When the UK is running a balance of payments deﬁcit, this means that:
A) the UK is exporting high-productivity capital items.
B) the average wage level in the UK is very high.
C) the UK is importing more goods and services than it is exporting overseas.
D) the government has to take policies that will shift the aggregate supply curve to the left.

Question

Quizplus · Accepted Answer

A balance of payments deficit occurs when a country imports more goods and services than it exports, leading to more money leaving the country than coming in from trade.

When the UK Is Running a Balance of Payments Deﬁcit