A country exports $200 billion worth of goods and imports $300 billion worth of goods over a year. How can the country's trade deficit be calculated?

A trade deficit is calculated by subtracting the value of exports from the value of imports. Here, $300 billion − $200 billion = $100 billion, so the country has a $100 billion trade deficit. The correct choice is “by subtracting the exports from the imports.”

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