If a country has a trade deficit of $50 billion, which of the following can be true?
A) The country's exports are $150 billion, and its imports are $100 billion.
B) The country's exports are $110 billion, and its imports are $160 billion.
C) The country's exports are $100 billion, and its imports are $50 billion.
D) The country's exports are $150 billion, and its imports are $60 billion.

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country's imports exceed its exports. In option B, the country's imports ($160 billion) are $50 billion more than its exports ($110 billion), which matches the definition of a $50 billion trade deficit.

If a Country Has a Trade Deficit of $50 Billion