In the context of the Indian economy, the term 'Twin Deficit' refers to:
A. Capital account deficit and fiscal surplus
B. Fiscal deficit and current account deficit
C. Budget deficit and trade surplus
D. Revenue deficit and primary deficit only
Answer: Option B
Solution (By JKSSB Mock Tests)
Twin deficit refers to the simultaneous existence of a fiscal deficit (government budget) and a current account deficit (external sector) in an economy.
Explanation:
A nudge is any aspect of choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing economic incentives, as popularised by Thaler and Sunstein.
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