What is a trade deficit? When a country's imports exceed its exports ) When a country's exports exceed its imports When a country produces more than it consumes When a country invests more than it saves

## Step 1<br />A trade deficit is a term used in economics to describe a situation where a country's imports exceed its exports. This means that the country is buying more goods and services from other countries than it is selling to them.<br /><br />## Step 2<br />The other options provided do not accurately define a trade deficit. <br /><br />## Step 3<br />When a country's exports exceed its imports, this is referred to as a trade surplus, not a trade deficit.<br /><br />## Step 4<br />When a country produces more than it consumes, this is not directly related to a trade deficit. It could be a sign of economic growth, but it doesn't necessarily mean the country has a trade deficit.<br /><br />## Step 5<br />When a country invests more than it saves, this is also not directly related to a trade deficit. It could be a sign of economic growth, but it doesn't necessarily mean the country has a trade deficit.