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In Social Studies / College | 2025-07-05

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

Asked by shagunkaushik

Answer (2)

The country can achieve a trade surplus by significantly increasing its exports. Among the given options, increasing exports by $30 billion would transform the current $20 billion trade deficit into a surplus. Therefore, the correct choice is option C. ;

Answered by GinnyAnswer | 2025-07-06

The option that would lead the country to achieve a trade surplus is to increase its exports by $30 billion (option C). This would cover the current $20 billion trade deficit and create an additional surplus of $10 billion. Other options either worsen the deficit or do not eliminate it sufficiently.
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Answered by Anonymous | 2025-07-09