Which of the following relationships is nicknamed the "twin deficits"?
A)The relationship between budget deficit and trade deficit.
B)The relationship between budget deficit and money supply deficit.
C)The relationship between trade deficit and money supply deficit.
D)The relationship between budget deficit and deficit of domestic investment.

Question

Quizplus · Accepted Answer

The "twin deficits" refers to the relationship between a country's national budget deficit and its trade deficit. When a country is spending more than it earns (budget deficit) and importing more than it exports (trade deficit), these two deficits often occur together and influence each other.

Which of the Following Relationships Is Nicknamed the "Twin Deficits