Statement I: Our merchandise trade deficit with Japan set a record in 2007.
Statement II: Our merchandise trade deficit with China set a record in 2008.

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.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods, leading to a negative balance of trade.

Record

A document or electronic file that systematically captures and preserves information or data for future reference or analysis.

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and historical significance.