A country purchases $110 billion of foreign-produced goods and services and sells $120 billion of domestically produced goods and services to foreign countries. It has imports of

A) $120 billion and a trade deficit of $10 billion.
B) $120 billion and a trade surplus of $10 billion.
C) $110 billion and a trade deficit of $10 billion.
D) $110 billion and a trade surplus of $10 billion.

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Patrick McSweeney · Accepted Answer

Final Answer : D, Explanation :  The country has imports of $110 billion (the value of foreign-produced goods and services it purchases) and a trade surplus (exports exceed imports) of $10 billion ($120 billion in sales of domestically produced goods and services to foreign countries minus $110 billion in purchases of foreign-produced goods and services).

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