Which of the Following Is TRUE of the Relationship Between

question 126

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.

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Definitions:

Commerce Clause

A provision in the U.S. Constitution (Article I, Section 8, Clause 3) granting Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.

Congress

A bicameral body of government in the United States tasked with making laws, comprised of two houses: the Senate and the House of Representatives.

Trade Among States

The exchange of goods, services, or both between states within a country, subject to regulations and restrictions by the government.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.