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

Question

Quizplus · Accepted Answer

The value of foreign assets purchased by the citizens of Salvania can be calculated using the formula: 
Foreign Assets Purchased = Exports - Imports - Foreigners' Assets Purchased 
Substituting the given values: 
Foreign Assets Purchased = $500 billion - $400 billion - $200 billion 
Foreign Assets Purchased = $300 billion. Therefore, the correct answer is C.

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