The U.S. trade deficit was growing until the COVID-19 pandemic hit.The growth in the U.S. trade deficit means that U.S. consumption:

Group of answer choices

is smaller and there is a smaller Federal government budget deficit

is larger and there is a larger increase in borrowing from, and sale of assets to, the rest of the world (RoW).

is larger and there is a a higher household savings rate.

is smaller and there is a smaller increase in borrowing from, and sale of assets to, the rest of the world (RoW).