The Problem of the "Twin Deficits" Refers to

question 43

Multiple Choice

The problem of the "twin deficits" refers to

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

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Definitions:

Organic Product

A compound or material derived from living organisms or the result of organic reactions.

Structure

The three-dimensional arrangement of atoms within a molecule, which determines its chemical behavior.

Polypropylene

A thermoplastic polymer made through the polymerization of propylene, used in packaging, textiles, and various types of containers.

Carbonate Ester

An organic compound formed by the reaction of a carbonate ion with an alcohol, often used as solvents and intermediates in chemical synthesis.