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Guys, please help for the following True/False/Uncertain statement and with explanation, cheers!

The trade deficit is higer during economic downturns

2007-02-25 21:06:03 · 2 answers · asked by luzsdavis 1 in Social Science Economics

2 answers

This is an uncertain statement as an economic downturn may not necessarily be associated with; a symptom of, or; caused by; trade deficit.

If the question was "the trade deficit is ALWAYS higher during economic downturns" - this would be a false statement.

x

2007-02-25 22:46:46 · answer #1 · answered by ? 5 · 0 0

Au Contraire Mon Frere

During an economic downturn, the value of the state's currency goes down. Thus making exports cheaper and imports more expensive. This means that a trade deficit gets LOWER during economic downturns.

The Answer is FALSE.

2007-02-25 22:51:14 · answer #2 · answered by Yo, Teach! 4 · 0 0

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