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1. Why are budget deficits and trade deficits sometimes called the twin deficits? 2. What is capital flight? When a country experiences capital flight, what

1. Why are budget deficits and trade deficits sometimes called the twin deficits? 2. What is capital flight? When a country experiences capital flight, what is the effect on interest rates and exchange rates? 3. What are exchange rates and how are they determined? 4. Is a strong currency always in the best interest of a country

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