a$.$ When does a trade deficit occur?

multiple choice $1$

Credits to the financial account exceed the debits.

The balance of payments is negative.

Debits to the current account exceed the credits.

Credits to the current account exceed the debits.

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b$.$ Which of the following statements concerning a trade deficit is true?

multiple choice $2$

The domestic currency has appreciated.

Net exports are positive.

The federal government holds a significant debt balance.

Imports exceed exports.