Suppose Salvania's exports equal $500 billion and its imports equal $400 billion. JForeigners purchased $200 billion worth of assets in Salvania. What is the value of foreign
Jassets purchased by the citizens of Salvania?

Question

Quizplus · Accepted Answer

To find the value of foreign assets purchased by the citizens of Salvania, we need to calculate the current account balance, which is equal to exports minus imports plus net foreign investment.

Current account balance = $500 billion - $400 billion + $200 billion = $300 billion

Therefore, the value of foreign assets purchased by citizens of Salvania is $300 billion.

Suppose Salvania's Exports Equal $500 Billion and Its Imports Equal