Which of the following is true of the U.S. trade balance and the federal government budget?
A) In most years since the 1970s, both have been in surplus.
B) In most years since the 1970s, both have been in deficit.
C) Both exhibited greater variability before the 1970s than they have since.
D) The federal government budget deficit was more variable before the 1970s, but the trade deficit has been more variable since.

Question

Quizplus · Accepted Answer

In most years since the 1970s, both the U.S. trade balance and the federal government budget have been in deficit. This reflects a tendency for the U.S. to consume more goods and services than it produces domestically and for the government to spend more than it collects in revenue.

Which of the Following Is True of the U