In the Twin Deficits Hypothesis,to Reduce a Current Account Deficit,a

question 11

Multiple Choice

In the twin deficits hypothesis,to reduce a current account deficit,a country has to:

• A) increase domestic investment
• B) reduce private saving
• C) reduce government budget deficit
• D) All of the above are correct

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Definitions:

Debtor Corporation

A business entity that owes money to creditors.

Creditors

Individuals or entities that are owed money by others, usually as a result of extending loans, credit, or services.

Bankruptcy Law

A legal framework governing the process through which individuals or entities unable to meet their financial obligations can seek relief from some or all of their debts.

Equitable Treatment

Fair and impartial handling in a manner that is right or reasonable, giving individuals or groups equal opportunities and fairness.