If a budget deficit as a percent of GDP is greater than the growth of real output,the national debt will

Question

Quizplus · Accepted Answer

If the budget deficit as a percent of GDP is greater than the growth of real output, it means that the government is borrowing more than the economy is growing. This will result in an increase in the national debt, which is the total amount of money the government owes. Since the economy is not growing fast enough to keep up with the increase in debt, the national debt will increase relative to the size of the economy. Therefore, the correct answer is D.

If a Budget Deficit as a Percent of GDP Is