How Does a Budget Deficit Lead to a Trade Deficit

Multiple Choice

How does a budget deficit lead to a trade deficit?

A) The trade deficit triggers higher interest rates, which increase the budget deficit.
B) The budget deficit leads to higher interest rates and exchange rates, which shrink net exports.
C) The trade deficit causes lower interest rates, which leads to economic recession and a budget deficit.
D) The budget deficit causes lower exchange rates, which decrease net exports.