The twin deficit problem refers to deficits in the United States':
A) current account and budget
B) capital account and budget
C) capital account and unilateral transfers
D) budget and unilateral transfers

Question

Quizplus · Accepted Answer

The twin deficit problem refers to the simultaneous occurrence of a budget deficit (government spending exceeds its revenues) and a current account deficit (a country imports more goods, services, and capital than it exports). This is often observed in the United States, where government spending and a high level of imports relative to exports can lead to these dual deficits.

The Twin Deficit Problem Refers to Deficits in the United