Question

Which of the following statements about a trade deficit is true?

Running a trade deficit is always bad, because it means a country is exporting more than it is importing.
Running a trade deficit is always bad, because it means a country is importing more than it is exporting.
Running a trade deficit may be the right thing to do if the deficit is used to increase productive capacity.
Running a trade deficit may be the right thing to do if the deficit is used to increase consumption.

Answer 1

second, definately

Answer 2

yes mam!! :)