Which of the Following Is True of the Relationship Between

Multiple Choice

Which of the following is true of the relationship between U.S. trade deficits and federal government budget deficits?

A) Increases in the budget deficit tend to be associated with increases in the trade deficit.
B) Increases in the budget deficit tend to be associated with reductions in the trade deficit.
C) Increases in the budget deficit are always associated with increases in the trade deficit.
D) Increases in the budget deficit are always associated with reductions in the trade deficit.