In the 1980s There Was Much Debate in the US

question 26

Multiple Choice

In the 1980s there was much debate in the US concerning "twin deficits". This refers to simultaneous deficits in

• A) the current account and capital account
• B) the capital account and the government's budget
• C) the current account and the government's budget
• D) the current account and the financial account
• E) the financial account and the government's budget

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Definitions:

Stocks on Margin

Refers to buying stocks by borrowing a part of their purchase price from the brokerage firm.

Percentage Point

A percentage point is a unit for expressing differences in percentages, helping to clarify changes in percent values over time by denoting the absolute difference between them.

Standard and Poor's

A financial services company known for its stock market indices such as the S&P 500, as well as its rating services for bonds and other securities.

Stock Split

Issue by a corporation of a given number of shares in exchange for shares currently held by stockholders. A split increases the number of shares outstanding. A reverse split decreases the number outstanding.