A.
A low savings rate means that consumers are buying more, and more buying leads to an increase in a country’s trade deficit.
B.
A low savings rate means that people are spending more than they earn and that results in increased financial difficulties for consumers, higher interest rate, and fewer international sales, resulting in a decrease in a country’s trade deficit.
C.
A high savings rate means that there is more money available for investment which results in greater production and increased international sales which lead to lower trade deficits.
D.
A country’s savings rate has no effect on the country’s trade deficit.