Statement I: Our Trade Deficit with Japan Could Be Cut

Statement I: Our trade deficit with Japan could be cut by about nine tenths if the Japanese halted their protectionist trade policies.
Statement II: If we could wipe our trade deficit with Japan and China,we would be running a trade surplus.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.