The United States trade deficit first became a problem in the 1970s because _____.

Question

the prices of imports from China increased dramatically

the prices of imports from Japan increased dramatically

the price of foreign oil was raised by APEC

the price of foreign oil was raised by OPEC

Answer 1

The United States trade deficit first became a problem in the 1970s because the price of foreign oil was raised by OPEC. The oil crises of the 1970s, particularly in 1973 and 1979, led to significant increases in oil prices, which impacted the U.S. economy and contributed to a growing trade deficit as the country imported more oil.