Question

Why would a government MOST likely be concerned about its country carrying a trade deficit?

A) A trade deficit means that the country's productivity is low.

B) A trade deficit means local companies do not have enough competition.

C) A trade deficit ties up money that could be used for economic growth.

D) A trade deficit decreases demand for goods overall.

E) A trade deficit means that consumers do not have enough purchasing power.

Answer

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