Question

A country has i = $200 billion, s = $400 billion, and purchased $600 billion of foreign assets. How many of its assets did foreigners purchase?

Answer 1

Foreigners purchased $400 billion of the country's assets.

Step-by-step explanation:

To find out how many assets foreigners purchased, we can use the formula:

Assets purchased by foreigners = Total foreign assets - Initial foreign assets

In this case, the total foreign assets are $600 billion and the initial foreign assets are $200 billion. Plug the values into the formula:

Assets purchased by foreigners = $600 billion - $200 billion = $400 billion

Therefore, foreigners purchased $400 billion of the country's assets.