I: the Twin Deficits Prediction Is the Proposition That a Country

question 62

Multiple Choice

I: The twin deficits prediction is the proposition that a country with a large government budget deficit is likely to have a large trade deficit.II: An increase in foreign interest rates will cause changes in a small open economy that are consistent with the twin deficits prediction.

• A) I is true; II is not.
• B) II is true; I is not.
• C) Both I and II are true.
• D) Neither I nor II is true.

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Definitions:

New Solutions

Innovative or fresh approaches devised to solve problems or address challenges.

Avoiding Style

A conflict management strategy where an individual deliberately stays away from addressing or engaging in a conflict.

Unassertive

Characterized by a lack of self-confidence and a tendency to yield to others; not advocating for one's own rights or preferences.

Uncooperative

Not willing to work together or assist others.