Suppose Boulinas' exports equal $50 billion, its purchases of foreign assets equal $100
Billion, and foreign purchase of Boulinas' assets equal $200 billion. What is the value of
Boulinas' imports?

Question

Quizplus · Accepted Answer

Boulinas' imports can be calculated using the formula: Imports = Exports + Net Capital Outflow. Here, Net Capital Outflow = Purchases of foreign assets - Foreign purchase of Boulinas' assets = $100 billion - $200 billion = -$100 billion. Therefore, Imports = $50 billion + (-$100 billion) = $150 billion.

Suppose Boulinas' Exports Equal $50 Billion, Its Purchases of Foreign