Question

Select the correct answer.
In a given year, a country's exports are worth $12 billion and its imports are worth $4 billion. How much is the trade deficit or surplus for this country?
$10 billion deficit
$8 billion deficit
A.
B.
C.
D.
QE
$4 billion surplus
$7 billion surplus
$8 billion surplus
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Answer 1

Answer:

trade surplus is $8 billion

If a country’s exports are worth $12 billion and its imports are worth $4 billion, this means that the country has a trade surplus because exports are greater than the imports. The trade surplus for this country is ($12 billion- $4 billion) or $8 billion. This also means that the country’s currency demand is higher.