If a country had a trade deficit of $10 billion and then its exports rose by $20 billion and its imports rose by $10 billion,its net exports would now be
A)$0
B)$10 billion.
C)-$10 billion.
D)-$20 billion.

Question

Quizplus · Accepted Answer

Initially, the trade deficit was $10 billion, meaning imports exceeded exports by $10 billion. With exports increasing by $20 billion and imports increasing by $10 billion, the net change in exports is $10 billion. This eliminates the initial $10 billion deficit, resulting in net exports of $0.

If a Country Had a Trade Deficit of $10 Billion