During the 1960s and 1970s, the U.S. trade balance was close to zero, but during the 1980s, the trade deficit ballooned to unprecedented levels due to:
A. a decline in national saving caused largely by rapidly rising government budget deficits.
B. an inability of U.S. companies to compete in the international market.
C. a worldwide recession that made it difficult for American companies to sell their products abroad.
D. a decline in private saving that resulted from an upsurge in consumption.
Answer: A
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