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Twin deficits

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Reference no: EM133377465

Twin Deficits

Let's say that the budget deficit rises in a given country.

1. If the twin deficits hypothesis holds, what other deficit rises?

2. If the twin deficit hypothesis does not hold, what must happen to two other variables (Hint: If you are confused by the two parts, consider that it's just one variable).

Reference no: EM133377465

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