What were the chief links between the U.S.federal budget deficit and the U.S.trade deficit during the 1980s?

Question

Quizplus · Accepted Answer

High U.S. interest rates led to a rise in the relative value of the dollar, which made U.S. exports more expensive and less competitive in foreign markets, leading to a trade deficit. Additionally, the strong dollar made imports cheaper, increasing demand for foreign goods and exacerbating the trade deficit. The federal deficit contributed to the trade deficit by placing pressure on the dollar through increased borrowing and relative increases in interest rates.

What Were the Chief Links Between the U