All else equal, a rise in the debt-to-GDP ratio implies
A) a greater ratio of interest payments to GDP.
B) a greater difference between the official and correct measures of the deficit as a fraction of GDP.
C) a greater surplus is needed to prevent further rises in the debt-to-GDP ratio.
D) all of the above
E) none of the above
D
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When neither player in a game would want to deviate from a particular outcome, taking the opponent's behavior as given, the outcome is
a. a Stackelberg equilibrium. b. Pareto optimal. c. a Nash equilibrium. d. a dominant strategy.
Most modern economic analysis is normative in nature, but involves questions with positive aspects
Indicate whether the statement is true or false
Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output. As a result the monopoly's profit will fall
Indicate whether the statement is true or false
The capabilities approach considers:
A. how much human capital improves over time in a society. B. what people can be and how much people can do over time in a society. C. how much human capital one society has relative to another. D. how much total output changes over time in a society.