3119EconomicsMedium
The Phrase “twin deficits” refers to?
AThe fact that if a country has a trade deficit, its trading partners must also have trade deficits
BA country’s trade deficit and its government budget deficit
Cthe equality of a country’s saving deficit and its investment deficit
Da country’s trade deficit and its net capital outflow deficit
Correct answer
B. A country’s trade deficit and its government budget deficit
Explanation
The correct answer is A country’s trade deficit and its government budget deficit.