A fiscal policy is considered sustainable when the debt-to-GDP ratio is ________, and it is considered unsustainable when the debt-to-GDP ratio is ________
A) constant; increasing or decreasing
B) constant or decreasing; increasing
C) decreasing; constant or increasing
D) constant or increasing; decreasing
B
You might also like to view...
Which of the following statements is most consistent with the rule of rational choice?
a. "The Environmental Protection Agency should strive to eliminate virtually all air and water pollution." b. "When evaluating new prescription drugs, the Food and Drug Administration should weigh each drug's potential health benefits against the potential health risks posed by known side effects." c. "Police forces should be enlarged until virtually all crime is eliminated." d. "Manufacturers of automobiles should seek to make cars safer, no matter the costs involved."
There are two methods of calculating elasticities. One calculates the ratio of the percentage changes in quantity and price, and the other calculates the average percentage changes in quantity and price. We use the second method because it
a. involves an additional calculation b. is not sensitive to direction of movement c. is sensitive to direction of movement d. is never wrong e. always has the same sign
If a firm is able to lower total costs by specializing in marketing and distribution while outsourcing production, it is taking advantage of:
A. economies of scope. B. less developed nations. C. technical efficiency. D. economies of scale.
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Consider the advertising game in Figure 10-17. Firms A and B know the game will be played for exactly five periods. What is a Nash equilibrium to this game?
A. {do not advertise, do not advertise} provided the interest rate is less than 0.10 percent B. {advertise, advertise} C. {advertise, advertise} provided the interest rate is less than 0.50 percent D. {advertise, do not advertise}