If a country has a trade deficit of $50 billion and exports worth $30 billion, w

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Question: If a country has a trade deficit of $50 billion and exports worth $30 billion, what are its imports?

Options:

Correct Answer: $80 billion

Solution:

Imports = Exports + Trade deficit = 30 + 50 = $80 billion

If a country has a trade deficit of $50 billion and exports worth $30 billion, what are its imports?

If a country has a trade deficit of $50 billion and exports worth $30 billion, what are its imports?

Step 1: Understand what a trade deficit is. A trade deficit occurs when a country's imports are greater than its exports.
Step 2: Identify the values given in the question. The trade deficit is $50 billion and exports are $30 billion.
Step 3: Use the formula to find imports. The formula is: Imports = Exports + Trade Deficit.
Step 4: Substitute the values into the formula. So, Imports = 30 billion (exports) + 50 billion (trade deficit).
Step 5: Calculate the total. 30 + 50 equals 80 billion.
Step 6: Conclude that the imports are $80 billion.

Trade Balance – The relationship between a country's exports and imports, where a trade deficit occurs when imports exceed exports.
Calculating Imports – Understanding how to derive imports from the trade deficit and exports using the formula: Imports = Exports + Trade Deficit.