Identifying years with rising imports and improving trade balance

Steps:

• Define balance of trade (BOT) as exports minus imports; improvement means BOT increases (more positive or less negative).
• Check each pair for import value increase from year X to Y.
• For pairs with import rise, verify if BOT also improves (exports rise more than imports).
• Select pair meeting both conditions.

Why C is correct:

• Between years 3 and 4, imports increased while BOT improved per the BOT formula (exports rose more than imports).

Why the others are wrong:

• A: Imports decreased or BOT worsened between 1 and 2.
• B: No import increase between 2 and 3.
• D: BOT deteriorated despite any import change between 4 and 5.

Not enough information: Specific data on imports and exports by year is missing to fully verify.

Final answer: C