Assume that seigniorage and the government's primary deficit are both zero. If the real interest rate is greater than the growth rate of real GDP, the debt-to-GDP ratio
A) will increase.
B) will decrease.
C) will either decrease or not change.
D) will either increase or not change.
A
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In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________
A) investment; consumption B) consumption; investment C) net exports; investment D) all of the above E) none of the above
An unanticipated increase in inflation will:
a. redistribute income from employers to workers. b. redistribute income from lenders to borrowers. c. redistribute income from borrowers to lenders. d. do none of the above.
An upward-sloping labor-supply curve implies that an increase in the wage induces
a. firms to increase the quantity of labor they hire. b. firms to increase the quantity of output they produce. c. workers to decrease the quantity of leisure they enjoy. d. All of the above are correct.
American workers in Iraq earn hazard pay. This is an example of a compensating differential.
Answer the following statement true (T) or false (F)