According to the "savings glut" explanation of global trade imbalances: A) high consumption in the U.S. led to higher U.S. interest rates which called forth additional saving from U.S. households and these financed a trade surplus with China. B) high saving in China and other Asian countries flowed to the U.S. which depressed interest rates and reinforced American spending on Asian exports. C) high saving in the U.S. depressed interest rates which stimulated American consumption of electronic imports from China and other Asian economies. D) high U.S. interest rates from tight monetary policy stimulated extra saving from American households which depressed the prices of American goods, improved their global competitiveness, and increased America's trade surplus with less developed nations. E) high savings in China and other Asian economies reduced interest rates in those countries which caused strong demand, higher inflation, and thus an expansion in China's trade surplus.

Justify chosen answer