Suppose country a sells $100 million worth of goods and services to country b. country b sells $50 million worth of goods and services to country a. these are the only two countries in macro world. net exports in country:
a) b equal −$50 million.
b) a equal $150 million.
c) a equal -$150 million.
d) b equal $50 million.

The correct answer is option a.

Explanation:

Country A sells $100 million worth of goods and services to country B. This is exports for country A.

Country B sells $50 million worth of goods to country A. This is imports of country A.

Net exports are the difference between exports and imports.

Net exports for country A

= Exports - Imports

= $100 million - $50 million

= $50 million

Country A sells $100 million worth of goods and services to country B. This is imports for country B.

Country B sells $50 million worth of goods to country A. This is exports for country B.

Net exports for country B

= Exports - Imports

= $50 million - $100 million

= - $50 million

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