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1. Twin Deficits: [10pts} Derive the equation for Twin Deficits (4pts} - What is meant by Twin Deficits? [3 pts} - Assume the budget deficit
1. Twin Deficits: [10pts} Derive the equation for Twin Deficits (4pts} - What is meant by Twin Deficits? [3 pts} - Assume the budget deficit is 3% and country has a trade surplus of 4%. What is going on in this example? (3pts}
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