Examlex
Which statement is consistent with labeling theory?
Twin Deficits
Refers to the situation where a country is running both a fiscal deficit (government spending exceeds revenue) and a current account deficit (imports exceed exports).
Budget Deficit
The condition when a government spends more than its income, requiring it to borrow money or accumulate debt to cover the gap.
Trade Deficit
A situation where a country's imports of goods and services exceed its exports, leading to negative balance of trade.
Real Exchange Rate
A measure that adjusts the nominal exchange rate by the relative prices of domestic and foreign goods and services, reflecting the purchasing power of two currencies.
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