If U.S. buyers purchased $500 billion of foreign goods and foreign buyers purchased $400 billion of U.S. goods, the U.S. balance of trade would be:

Question

Quizplus · Accepted Answer

The U.S. balance of trade is calculated as the difference between exports and imports. In this case, exports (U.S. goods purchased by foreign buyers) are $400 billion and imports (foreign goods purchased by U.S. buyers) are $500 billion. Therefore, the balance of trade is -$100 billion, indicating a trade deficit.

If US Buyers Purchased $500 Billion of Foreign Goods and Foreign