Historical evidence seems to indicate that
A) budget and trade deficits generally move in the same direction.
B) budget and trade deficits generally move in the opposite direction.
C) there is no consistent relationship between trade and budget deficits.
D) trade and budget deficits decrease when the president is a Republican, and increase when the president is a Democrat.

Question

Quizplus · Accepted Answer

Historical evidence shows that budget and trade deficits often move in the same direction, meaning when one increases, the other tends to increase as well, and vice versa. This is partly because a higher budget deficit can lead to more borrowing from abroad, which in turn can affect the trade balance.

Historical Evidence Seems to Indicate That