One of the causes of the rising trade deﬁcits of the past decade has been a declining saving rate in
the United States.

Question

Quizplus · Accepted Answer

A declining saving rate in the United States has contributed to the rising trade deficits because it means that the US is relying more on borrowing to finance consumption and investment, which in turn requires importing more goods and services from other countries.

One of the Causes of the Rising Trade Deﬁcits of the Past