Which statement describes the effect of decreasing budget deficits on the U.S. economy in the 1990s? a.) "We believed the advent of the internet would transform labor and promote prosperity." b.) "As the federal government reduced its borrowing, more capital became available in the private sector." c.) "Wages for U.S. jobs rose, despite competition from low-wage workers in Europe and elsewhere." d.) "Markets opened up, and the flow of people and products across national and international boundaries increased." SUBMIT MY ANSWER Report an issue with this question Globalization and the American Economy Sophia Sophia PDF Version WHAT'S COVERED Advocates of free trade argue that a global free market will promote progress and prosperity throughout the world. Also known as globalization, this philosophy is based on the premise that markets should operate with as little government restraint as possible. During the 1990s, the United States experienced a sustained period of economic growth, which reinforced the belief that America had won the Cold War and that globalization would provide a prosperous future. This tutorial examines globalization and the "new" American economy in four parts: 1. "No New Taxes" 2. "New Democrats" 3. Proposed Reform and Partisan Backlash 4. Globalization and the New Economy Terms to Know People to Know 1. "No New Taxes" The tax cuts and increased military spending during Ronald Reagan's presidency, although favorable to wealthy Americans and s