What two measures of macroeconomic activity are often referred to as the "twin deficits"?
A)net capital flows and net exports
B)the foreign exchange deficit and net foreign investment
C)the budget deficit and the current account deficit
D)the saving-investment deficit and the export deficit

Question

Quizplus · Accepted Answer

The two measures of macroeconomic activity that are often referred to as the "twin deficits" are the budget deficit and the current account deficit. The budget deficit is the difference between government spending and revenue, while the current account deficit is the difference between a country's total imports and total exports. Both deficits reflect a country's economic imbalance and can have negative consequences for the economy if they are not managed properly.

What Two Measures of Macroeconomic Activity Are Often Referred to as the "Twin