The concept of twin deficits refers to ________.
A)the phenomenon of simultaneous trade and government budget deficits
B)the phenomenon of simultaneous government and private budget deficits
C)the phenomenon of simultaneous state and federal budget deficits
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Twin deficits refer to the phenomenon of a country having both a trade deficit (where the value of imports is greater than the value of exports) and a government budget deficit (where government spending exceeds revenue). Therefore, choice A is the correct answer. Choices B and C are not accurate descriptions of twin deficits.

The Concept of Twin Deficits Refers to ________