If a Country Has a Trade Deficit, Does It Indicate

Multiple Choice

If a country has a trade deficit, does it indicate that the country has a serious problem?

A) No. Trade deficits occur when a country's investment spending is higher than its level of saving.
B) Yes. Trade deficits occur when a country has low productivity.
C) Yes. Trade deficits occur when a country does not have a comparative advantage in production.
D) Yes. Trade deficits occur when a country has a high budget surplus.