A country has a trade deficit when

A) its exports exceed its imports.
B) its exports equal its imports.
C) its exports are less than its imports.
D) government spending is greater than tax receipts.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.

Exports

Goods, services, or technology sent out of a country to be sold in another.

Imports

Goods and services purchased from foreign producers, brought into a country.