Which of the following has contributed to large U.S. trade deficits in recent years?

Question

Quizplus · Accepted Answer

China fixing its exchange rate has contributed to large U.S. trade deficits by making Chinese goods cheaper in the U.S. and U.S. goods more expensive in China, leading to an imbalance in trade. Rapid decreases in the price of oil would not necessarily increase the trade deficit, as it could reduce the cost of imports. A rising U.S. saving rate would likely reduce the trade deficit, as it could lead to decreased consumption and imports.

Which of the Following Has Contributed to Large U