The Problem of the "Twin Deficits" Refers to

question 43

Multiple Choice

The problem of the "twin deficits" refers to

• A)a decrease in domestic investment and an increase in the deficit on the capital account.
• B)a decrease in the government's budget deficit.
• C)an increase in the government's budget deficit and an increase in private sector borrowing.
• D)having both a government budget deficit and a deficit on the current account.
• E)an increase in private saving and a decrease in the capital account.

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Definitions:

Expected Values

The mean of a probability distribution, representing the average outcome one can expect to see.

Null Hypothesis

A statement used in statistics that suggests there is no significant difference or effect, serving as the default assumption to be tested.

Chi-Squared Test

A statistical test used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.

P-Value

A statistical measure that helps scientists determine the significance of their research results; a low p-value indicates strong evidence against the null hypothesis.