Final answer:
To reduce a trade deficit from -200 to -100 billion dollars, one must increase savings, which may lead to a reduction in imports, provided other factors remain constant.
Step-by-step explanation:
To reduce your trade deficit from -200 to -100 in billions of dollars, we must understand the impact of savings on the trade balance. The trade deficit (X-M), where X is exports and M is imports, represents more money flowing out of the country than flowing in through trade. To reduce a trade deficit, a country must either increase exports (X), decrease imports (M), or do both. In this scenario, increasing savings can theoretically reduce the trade deficit.
When savings rise, there is generally a reduction in consumption, including the consumption of imported goods. This can lead to a decrease in imports (M). Assuming that all other factors remain constant, and that the increase in savings directly translates to a reduction in imports, a rise in savings would need to be enough to decrease the trade deficit by 100 billion dollars. To be more specific, one would need to look at the propensity to consume imported goods out of additional savings and any potential policy measures being taken.