Historic data indicate that there is usually a ________ relationship between trade deficits and federal government budget deficits.
A) positive
B) zero
C) negative
D) fluctuating

Question

Quizplus · Accepted Answer

Historic data often show a positive relationship between trade deficits and federal government budget deficits, meaning when one increases, the other tends to increase as well, and vice versa. This is partly due to the fact that an increase in government spending without a corresponding increase in taxes can lead to more imports than exports, contributing to a trade deficit.

Historic Data Indicate That There Is Usually a ________ Relationship