Choose the given statement as true/false:

An unfavorable balance of trade is good for the domestic economy.

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True

False

answer is B.

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Detailed Solution

The statement is false.
A favourable trade balance occurs when a nation sells more products and services than it imports. It is an economic phrase that denotes the presence of a surplus in the country's trade balance. An economic metric known as the balance of trade is created by deducting the total value of goods bought from the total value of goods exported. This equilibrium indicates where the nation is regarding trade connections with other countries. A positive balance indicates that the country exports more than it imports, and a negative balance indicates the opposite.
The correct statement would be a favorable balance of trade is good for the domestic economy.

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