What Two Measures of Macroeconomic Activity Are Often Referred to as the "Twin

question 206

Multiple Choice

What two measures of macroeconomic activity are often referred to as the "twin deficits"?

• A)net capital flows and net exports
• B)the foreign exchange deficit and net foreign investment
• C)the budget deficit and the trade balance
• D)the saving-investment deficit and the export deficit

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Definitions:

Article I, Section 8

A section of the United States Constitution that outlines the enumerated powers of Congress, including the authority to tax, regulate interstate commerce, and maintain armed forces.

Necessary and Proper

A clause in the U.S. Constitution granting Congress the power to pass all laws deemed necessary and proper for carrying out its enumerated powers.

XYZ Affair

A diplomatic incident between France and the United States in 1797-98, which led to an undeclared naval war, caused by French demands for bribes from American negotiators.

Domestic Political Ramifications

The consequences or effects on a country's internal politics resulting from specific actions, policies, or events.