If a country has net exports of $8 billion and sold $40 billion of goods and services abroad,then it has
A)$48 billion of imports and $40 billion of exports.
B)$48 billion of exports and $40 billion of imports.
C)$40 billion of imports and $32 billion of exports.
D)$40 billion of exports and $32 billion of imports.

Question

Quizplus · Accepted Answer

Net exports = Exports - Imports
Given, Net exports = $8 billion and Exports = $40 billion
Using the above formula, we can calculate Imports as follows:
$8 billion = $40 billion - Imports
Imports = $40 billion - $8 billion
Imports = $32 billion
Therefore, the country has $40 billion of exports and $32 billion of imports. Hence, option D is correct.

If a Country Has Net Exports of $8 Billion and Sold