Answer:
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.
