Statement I: China and Japan have continued to finance the huge U.S.trade deficit because the large American consumer market allows them to expand their production and create jobs for their citizens.
Statement II: China and Japan finance over half the U.S."twin deficits," the trade and federal budget deficits.

Question

Quizplus · Accepted Answer

Both statements are true. China and Japan have historically financed the U.S. trade deficit to benefit from the American consumer market, and they have been significant financiers of the U.S. twin deficits.

Statement I: China and Japan Have Continued to Finance the Huge