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The twin deficit identify suggests that there is a relationship between the government ‘s fiscal policy ( budget deficit or surplus) and the:

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Solution 1

The twin deficit hypothesis suggests that there is a relationship between a government's fiscal policy (budget deficit or surplus) and the country's balance of trade (trade deficit or surplus).

Here are the steps to understand this relationship:

  1. Fiscal Policy: This refers to the government's r Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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