The large trade deficits in the U.S. during the 1990's were primarily associated with a rise in domestic investment spending rather than a rise in the budget deficit.

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During the 1990s, the large trade deficits in the U.S. were mainly linked to an increase in domestic investment spending, particularly in the technology sector, rather than a significant rise in the government's budget deficit. This period was characterized by robust economic growth and relatively low federal budget deficits compared to the size of the economy, with the budget even reaching a surplus by the end of the decade.

The Large Trade Deficits in the U