multiple choice question\nif exports equal $10 billion and imports equal $14 billion, then\no there is a…

multiple choice question\nif exports equal $10 billion and imports equal $14 billion, then\no there is a trade deficit equal to $4 billion.\no there is a trade imbalance equal to $24 billion.\no there is a trade deficit equal to $14 billion.\no there is a trade surplus equal to $4 billion.

multiple choice question\nif exports equal $10 billion and imports equal $14 billion, then\no there is a trade deficit equal to $4 billion.\no there is a trade imbalance equal to $24 billion.\no there is a trade deficit equal to $14 billion.\no there is a trade surplus equal to $4 billion.

Answer

Explanation:

Step1: Recall trade - balance formula

Trade balance = Exports - Imports

Step2: Substitute values

Given Exports = $10$ billion and Imports = $14$ billion. So, Trade balance=$10 - 14=- 4$ billion.

Step3: Interpret result

A negative trade - balance indicates a trade deficit. The magnitude of the trade deficit is $4$ billion.

Answer:

there is a trade deficit equal to $4$ billion.