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

question 193

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 net exports
• D)the saving-investment deficit and the export deficit
• E)household and corporate debt

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Definitions:

Empirical Research

The collection of data through observation and experimentation to gain knowledge.

Anecdotal Evidence

Information derived from personal accounts, stories, or testimonials rather than from systematic scientific evaluations, often subject to bias.

Experimenter Bias

A process where the scientists performing the research influence the results, either intentionally or unintentionally, to achieve a certain outcome.

Double-Blind

An experimental procedure in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.