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

question 33

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 current account deficit
• D)the saving-investment deficit and the export deficit

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically associated with bonds, loans, and credit lines.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Discount Amortized

Discount amortized refers to the gradual reduction or write-off of the discount on bonds payable over the life of the bond, thus increasing the bond's carrying value on the balance sheet over time.

Interest Payable

The amount of interest that a borrower owes to a lender at a specific point in time but has not yet paid.