Neither a rising standard of living nor balanced trade, by itself, establishes a countrys ability to compete in the international marketplace
. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a countrys standard of living.
If the facts stated in the passage above are true, a proper test of a countrys ability to be competitive is its ability to
(A) balance its trade while its standard of living rises
(B) balance its trade while its standard of living falls
(C) increase trade deficits while its standard of living rises
(D) decrease trade deficits while its standard of living falls
(E) keep its standard of living constant while trade deficits rise
this was between A&E for me. Please explain your choice and reasoning.