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If imports are ₹450 crore and exports are ₹400 crore, what will be the net exports?

Answer and explanation

Correct answer: ₹−50 crore

Net exports are calculated by subtracting imports from exports: Net Exports = Exports − Imports = ₹400 crore − ₹450 crore = −₹50 crore. The negative result indicates a trade deficit because the value of imports is greater than the value of exports. Therefore, option A is correct; ₹50 crore shows only the difference without its economically important negative sign.

Related tags

EconomicsNational IncomeNet ExportsImportsExportsGdp AggregatesGdp And WelfareNational Income And Related Aggregates

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