Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
A)increased household saving.
B)decreased household saving.
C)a depreciation of the dollar.
D)an increase in inflation rates.

Question

Quizplus · Accepted Answer

The trade deficit increased due to decreased household saving, which led to higher consumption of imported goods, contributing to a larger trade deficit.

Despite the Elimination of the Federal Budget Deficit in the Late