A country has a trade surplus of $20 billion with its trading partners over ayear. Which change would cause the country to have a trade deficit thefollowing year, assuming everything else remains the same?OA. The country decreases its exports by $10 billion.B. The country increases its exports by $30 billion.C. The country increases its imports by $30 billion.O D. The country decreases its imports by $10 billion.

Balance of trade is the difference between the export and import of the country. When exports are…

A country has a trade surplus of $20 billion with its trading partners over a year. Which change would cause the country to have a trade deficit the following year, assuming everything else remains the same? A. The country decreases its exports by $10 billion.

A country has a trade surplus of $20 billion with its trading partners over a year. Which change would cause the country to have a trade deficit the following year, assuming everything else remains the same? A. The country decreases its exports by $10 billion.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 5E

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Question

A country has a trade surplus of $20 billion with its trading partners over a
year. Which change would cause the country to have a trade deficit the
following year, assuming everything else remains the same?
OA. The country decreases its exports by $10 billion.
B. The country increases its exports by $30 billion.
C. The country increases its imports by $30 billion.
O D. The country decreases its imports by $10 billion.

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