If you negate (C) thatis "Reducing a country’s national budget deficit will not necessarily result in a lowering of any trade deficit that country may have" CONTRADICTS the first statement "Large national budget deficits do not cause large trade deficits". This results in establishing the "cause and effect relationship". Hence option C is correctly reproducing the claim in question stem that there is not causation between budgets deficits and trade deficits.
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