Which of the following statements is not correct?
a. If GDP is rising faster than debt, the government is, in some sense, living within its means.
b. The ratio of debt to GDP in the United States has always been less than one.
c. Debts during wars may distribute the burden of fighting the war more evenly across generations.
d. During times of peace in the United States, the ratio of debt to GDP sometimes rose.
b
You might also like to view...
If the demand and supply curves for a commodity both shift to the left by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a higher price quantity. B) the same price and a higher quantity. C) the same price and a lower quantity. D) a lower price and a higher quantity.
The appropriate monetary policy in the event of a recessionary gap would be to
A. engage in an open market purchase of U.S. government securities. B. raise the required reserve ratio. C. increase the difference between the federal funds rate and the required reserve ratio. D. increase the difference between the discount rate and the federal funds rate.
Consider the following game. You roll a six-sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. The $30 when you "win" and the -$6 when you "lose" are called
A. incentives. B. trade-offs. C. expected values. D. payoffs.
An important reason for the Industrial Revolution to have started in Britain is that:
A) there were high entry barriers in British markets. B) Britain had a patent system. C) entrepreneurship was discouraged in Britain. D) Britain had extractive institutions.