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Why can a trade deficit slow economic growth?

A

Net exports become negative, reducing aggregate demand.

B

Consumer spending becomes negative, reducing aggregate demand.

C

Net exports become positive, reducing aggregate demand.

D

Net exports become negative, increasing aggregate demand.

Card 1 of 20

6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy Flashcards

  1. Intl A Level
  2. /Economics
  3. /6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy

20 flashcards on CIE Intl A Level Economics 6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy: the key terms and definitions you need to recall.

Flashcards