The Problem of the "Twin Deficits" Refers to

question 7

Multiple Choice

The problem of the "twin deficits" refers to

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

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Definitions:

Indirectly Involved

Individuals or entities that are not directly engaged in an action but may be affected by its outcomes.

Audiences

Groups of people who are the receivers of information, messages, or performances, often considered in communications, marketing, and public speaking.

Dilemma

A situation requiring a choice between equally undesirable alternatives or presenting a challenging problem with no clear solution.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.