When the United States buys more products than it sells from other countries,
what is created?
A. A foreign trade surplus
B. National debt
C. Profit seeking
D. A foreign trade deficit

The correct answer is D. When the United States buys more products than it sells from other countries, a foreign trade deficit is created.

Explanation:

The trade balance of a country is the amount of imports and exports that country performs in the period of one year. Thus, the difference between imports and exports yields a result, which can be positive or negative, which translates into a trade surplus or deficit.

When imports exceed exports, a foreign trade deficit takes place. The resulting deficit is then entered in the balance of payments with a negative sign, as expenditures are higher than incomes.

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