current affairs MCQ #7554

Which juxtaposition summarizes the twin deficits phrase often resurfacing when IMF reviews pair external vulnerability with strained public finances contemporaneously?

current affairs MCQ #7554

  1. Question 1

    Q1. Which juxtaposition summarizes the twin deficits phrase often resurfacing when IMF reviews pair external vulnerability with strained public finances contemporaneously?

    • A) Labor productivity gap versus fertilizer subsidies alone
    • B) Urban sprawl ratios versus motorway lane counts hypotheticals
    • C) Corporate dividend freeze versus telecom spectrum pricing hypotheticals
    • D) Fiscal imbalance alongside current-account imbalance worries

    Answer: Fiscal imbalance alongside current-account imbalance worries

    Explanation: The "twin deficits" phrase refers to Pakistan's simultaneous fiscal deficit (government spending exceeding revenues) and current account deficit (imports exceeding exports plus remittances), both of which drive external vulnerability and IMF programme conditionality.