If a country had a trade surplus of $50 billion and then its exports rose by $30 billion and its imports rose by $20 billion,its net exports would now be
A)$0 billion.
B)$20 billion.
C)$40 billion.
D)$60 billion.

Question

Quizplus · Accepted Answer

The initial trade surplus was $50 billion. With exports increasing by $30 billion and imports by $20 billion, the net increase in trade surplus is $10 billion ($30 billion - $20 billion). Therefore, the new trade surplus is $60 billion ($50 billion + $10 billion).

If a Country Had a Trade Surplus of $50 Billion