Statement I: Our trade deficit in 2009 with Japan was greater than our trade deficit with China.
Statement II: Our negative merchandise trade balance is about as large as our services trade (positive) balance.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Trade Deficit

A situation in which a country's imports exceed its exports, resulting in a negative balance of trade.

Negative Merchandise Trade Balance

A situation where a country's imports of goods exceed its exports of goods, leading to a trade deficit in physical goods.

Services Trade Balance

The services trade balance refers to the difference between a country's exports and imports of services.