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 by subtracting the value of U.S. exports from the value of U.S. imports. In this case, U.S. imports are $500 billion and U.S. exports are $400 billion, so the balance of trade is -$100 billion. This means that the U.S. imports more than it exports, resulting in a trade deficit.

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