In 1994, the trade balance deficit was 3.8 billion dollars. According to the Economic Research Institute RT, assuming an 11% increase in exports and a 3% increase in imports, the trade deficit would decrease to 3 billion dollars in 1995. What was the magnitude of exports and imports in 1994?
A trade deficit occurs when imports (import) are greater than exports (export). Let $x$ represent the imports and $y$ the exports in 1994 (in billion dollars). Then,

$$
x - y = 3.8
$$

In 1995, exports increased by $11\%$ compared to the previous year, i.e., $1.11 y$, and imports increased by $3\%$, i.e., $1.03 x$, and the deficit is

$$
1.03 x - 1.11 y = 3
$$

Substituting the value $x = 3.8 + y$ from equation (1) into equation (2),

$$
1.03(3.8 + y) - 1.11 y = 3
$$

from which $y = 11.425$ and $x = 15.225$ billion dollars.