Which of the following has contributed to large U.S. trade deﬁcits in recent years?
A) China ﬁxing its exchange rate
B) rapid decreases in the price of oil that have triggered dramatic increases in oil imports
C) a rising U.S. saving rate
D) All of these have contributed.

Question

Quizplus · Accepted Answer

China fixing its exchange rate has been a significant factor in contributing to the U.S. trade deficit, as it can make Chinese goods cheaper in the U.S. and U.S. goods more expensive in China, leading to an imbalance in trade.

Which of the Following Has Contributed to Large U