Question

An excess of merchandise exports over merchandise imports results in a balance of trade deficit. True False

Answer 1

Answer:  

False

Explanation:

As we know that

Net exports = Exports - imports

If the exports are higher than the imports than it would be surplus and on the other hand if exports are lower than the imports than it would be deficit

In the given scenario, since the merchandise exports have a higher value than the merchandise imports that reflects the trade surplus, not the trade deficit.