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Question
- the united states ran a trade deficit of $540 billion in 2012. this necessarily means: the u.s. economy was performing poorly the u.s. was experiencing high unemployment the u.s. currency was weak the u.s. was a net borrower from the rest of the world
Brief Explanations
A trade deficit occurs when a country imports more goods and services than it exports. To finance this excess of imports over exports, the country typically borrows from the rest of the world. A trade - deficit doesn't necessarily mean poor economic performance, high unemployment, or a weak currency.
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The U.S. was a net borrower from the rest of the world