If a country has a trade deficit of $500 million and its exports are $200 millio

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Question: If a country has a trade deficit of $500 million and its exports are $200 million, what are its imports?

Options:

Correct Answer: $700 million

Solution:

Imports = Exports + Trade deficit = 200 + 500 = $700 million

If a country has a trade deficit of $500 million and its exports are $200 million, what are its imports?

If a country has a trade deficit of $500 million and its exports are $200 million, what are its imports?

Step 1: Understand what a trade deficit is. A trade deficit means that a country is importing more goods and services than it is exporting.
Step 2: Identify the values given in the question. The trade deficit is $500 million and the exports are $200 million.
Step 3: Use the formula to find imports. The formula is: Imports = Exports + Trade deficit.
Step 4: Plug in the values into the formula. So, Imports = $200 million (exports) + $500 million (trade deficit).
Step 5: Calculate the total. $200 million + $500 million = $700 million.
Step 6: Conclude that the imports are $700 million.

Trade Deficit – A trade deficit occurs when a country's imports exceed its exports.
Imports and Exports Relationship – The relationship between imports, exports, and trade deficit is defined by the equation: Imports = Exports + Trade Deficit.