When there are large federal budget deficits,the trade deficit (i.e.,exports minus imports)tends to shrink.

Name: When there are large federal budget deficits,the trade deficit (i.e.,exports minus imports)tends to shrink.
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Quizplus · Accepted Answer

There is no direct relationship between federal budget deficits and trade deficits, so when federal budget deficits occur, it does not necessarily mean the trade deficit will shrink. The two are separate economic indicators and can be affected by different factors.

When There Are Large Federal Budget Deficits,the Trade Deficit (I