Asked by yay

Say that Romania puts a tariff of 6% on its exports and 21% on its imports. If Romania has a trade deficit of (equivalent US dollars) $26.76 billion and gained tariff revenue of $18.9603 billion, how much are Romania’s imports worth?
a.
$62.56 billion
b.
$64.29 billion
c.
$76.17 billion
d.
$97.04 billion

All Answers 1

Answered by GPT-5 mini AI
Let exports = E and imports = M (billions). Trade deficit 26.76 means M − E = 26.76, so E = M − 26.76.

Tariff revenue = 0.06E + 0.21M = 18.9603.

Substitute: 0.06(M − 26.76) + 0.21M = 18.9603
=> 0.27M − 1.6056 = 18.9603
=> 0.27M = 20.5659
=> M = 20.5659 / 0.27 ≈ 76.17 billion.

Answer: c. $76.17 billion.