If Trade Deficit is Rs 2000 crores and i

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

If Trade Deficit is Rs 2000 crores and imports is worth ₹4000 crore, then the value of exports will be :

Options:

Zero

₹4000 crore

₹2000 crore

₹6000 crore

Correct Answer:

₹2000 crore

Explanation:

The value of exports can be calculated using the trade balance formula:

Given that the trade deficit is and imports are :

Solving for Exports:

So, the correct answer is