When a country buys more from other countries than it sells, it is known as a trade deficit.
What is trade deficit ?
Trade deficit refer to the amount of money by which a country's imports are greater than its exports. A trade deficit happens when a nation imports more than it exports, to put it simply. Although very big deficits can hurt the economy, a trade deficit is neither fundamentally fully positive nor harmful. it also known as negative balance of trade .
Causes of trade deficit
Economic growth
Increased government spending
Changes in exchange rate
Limits of production
Removal of barriers to trade, such as tariffs
Effect of trade deficit
Lower prices
Weakening currency
Deflation
Changes in employment
Decrease in GDP
option B is correct.
to lean more about Trade deficit here
https://brainly.com/question/25313034
#SPJ2
