A balance of trade deficit exists when

A) net exports are negative.
B) net exports are positive.
C) exports equal imports.
D) exports exceed imports.

Balance of Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, indicating that it is spending more on foreign trade than it is earning.

Net Exports

The value of a country's total exports minus its total imports. It is a measure used to calculate a country's aggregate expenditures.