If the economy is growing 5% a year and GDP is $1000 billion, the additional revenues available to meet interest payments on the government deficit would be, ceteris paribus,

A) 50.
B) 500.
C) It depends upon the amount of new debt issued.
D) There would be no additional revenues.


A

Economics

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Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous increase in G and T will cause

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Economics