Which of the Following Is True About the Occurrence of the Twin

question 119

Multiple Choice

Which of the following is true about the occurrence of the twin deficits?

• A)They always occur together.
• B)They only occur when exchange rates are fixed.
• C)They did not occur in Canada between 1997 and 2007.
• D)They occur consistently in all the economies of the world except Canada.
• E)They only occur during large expansions.

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Definitions:

Corporation

A legal entity owned by stockholders whose liability is limited to the value of their stock ownership.

Partnership

A firm with multiple owners who share the profits and bear unlimited liability for the firm’s losses and debts.

Industrial Revolution

Development of large-scale factory production that began in Great Britain around 1750 and spread to the rest of Europe, North America, and Australia.

Worker Productivity

A measure of the output of goods and services produced by a worker within a certain period of time.