In the early 1990s, Japan underwent a recession that brought about a prolonged slump in consumer spending

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In the early 1990s, Japan underwent a recession that brought about a prolonged slump in consumer spending and capital investment (it was estimated that in 1994 only 65% of Japan’s manufacturing was being used). At the same time, the U.S. economy emerged from its recession and began expanding rapidly. Under these circumstances, what would you predict would happen to the U.S. trade deficit with Japan?

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