Which statement is the most accurate? (LO4) a) There is no basis for the claim that the United States is living beyond its means. b) Our current account deficit is not a serious problem. c) Our trade deficit is a major economic problem. d) Since 2002 the dollar has been rising against most major currencies.

There are three key concepts discussed in the statements - living beyond its means, current account deficit, and trade deficit. Living beyond its means refers to a situation where a country is spending more than it can afford. This usually happens when a country imports more than it exports or when the government's expenditure exceeds its income. A current account deficit happens when a country's total imports of goods, services, and transfers are greater than the total exports. It's not always a serious problem as it often means that the country is investing in foreign assets. A trade deficit is a situation where a country's imports exceed its exports. While it can be a concern, whether or not it's a 'major' problem varies depending on the context.

To determine the most accurate statement, we need to look at the current state of the US economy and historical trends. Specifically, we need to look at the state of the country's current account and trade deficits, as well as the value of the dollar against major currencies. As of now, it is widely acknowledged that the US does have a current account deficit and a trade deficit, implying that it is spending more than it is earning. Therefore, the claims that the US is 'not living beyond its means' or that 'the current account deficit is not a serious problem' can be considered slightly inaccurate. Since 2002, the value of the dollar has had periods of both rises and falls against major currencies, so it would be incorrect to say it has been consistently rising. Therefore, given these analyses, the most accurate statement is "Our trade deficit is a major economic problem". This isn't to say that the trade deficit is always a problem, but given the current economic climate and the US's extensive deficit, it is indeed a significant concern.