If U.S.net exports are $100 billion and the U.S.purchased $250 billion in foreign assets,then what amount of U.S.assets did foreigners purchase?
A) $150 billion
B) -$100 billion
C) $250 billion
D) -$150 billion
E) $50 billion

Question

Quizplus · Accepted Answer

Net exports are equal to the difference between the value of exports and imports. If net exports are $100 billion, it means the U.S. exported $100 billion more than it imported. This surplus in the current account must be balanced by a deficit in the financial account, meaning foreigners must have purchased $150 billion in U.S. assets to balance the $250 billion the U.S. purchased in foreign assets.

If USNet Exports Are $100 Billion and the U