Which of the following,other components of spending the same,would induce a trade deficit?
A)a decline in saving, but not a rise in investment
B)a rise in investment, but not a decline in saving
C)both a decline in saving and a rise in investment
D)neither a decline in saving nor a rise in investment

Question

Quizplus · Accepted Answer

When there is a decline in saving and a rise in investment, it leads to an increase in domestic demand for goods and services. This, in turn, leads to an increase in imports and a trade deficit.

Which of the Following,other Components of Spending the Same,would Induce