Question

The major causes of the large U.S. trade deficits between 1997 and 2007 include _________.

a. an increase in the saving rate and an increase in exports to China.
b. economic growth in other nations has outpaced the United States and a decrease in the saving rate.
c. an increase in imports resulting from economic growth and a decline in the saving rate.
d. increasing oil prices and increased imports by China.

Answer 1

c. an increase in imports resulting from economic growth and a decline in the saving rate.

Step-by-step explanation:

The trade deficit is when the net imports are higher than the net exports. The trade balance is the result of adding the total exports of the country and subtracting the total imports, and if the value is negative, it means that imports are higher than exports. In this case, the economic growth lived domestically combine with a lower rate of saving, boost the increase of final goods that were supplied by external sources