Ceteris Paribus, the Budget Deficit and the Trade Deficit

Ceteris paribus, the budget deficit and the trade deficit

A) are unrelated in the long run, since fiscal policy cannot affect GDP.
B) are negatively related in the long run, since fiscal expansion crowds out net exports.
C) are negatively related in the long run, since fiscal expansion drives up the exchange rate.
D) are positively related in the long run, since fiscal expansion crowds out net exports.
E) are positively related in the long run, since fiscal expansion weakens the exchange rate.