Economics question?

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

The trade deficit is higer during economic downturns

Answer:
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
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.

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