Which one of the following does NOT contribute to our huge trade deficit? (LO6) a) Our failing educational system b) Our high defense spending c) Our high saving rate d) Our huge oil imports

First, let's briefly look at each of the given options and their connection to the trade deficit: a) Failing educational system – This might lead to a less skilled workforce, which might struggle to compete in the global market, resulting in a reduction in exported goods and services. b) High defense spending - This may lead to increased imports of defense-related goods, which could increase the trade deficit. c) High saving rate - An increased saving rate might mean that people are spending less, leading to a decrease in imports and a possible decrease in the trade deficit. d) Huge oil imports - Importing large quantities of oil might result in an increase in the trade deficit, as the value of imported goods surpasses the value of exported goods.

Now that we have an understanding of how each option might be connected to the trade deficit, we can identify which one does not contribute to it: a) Failing educational system – This might contribute to the trade deficit. b) High defense spending – This might contribute to the trade deficit. c) High saving rate – This option is likely to decrease the trade deficit, as it might lead to reduced imports. d) Huge oil imports – This might contribute to the trade deficit. Considering the provided options, the correct answer is: c) Our high saving rate