A rising government debt
A) tends to decrease capital formation.
B) tends to increase the economy's long-run balanced-growth path.
C) tends to increase the balanced-growth GDP per worker.
D) means that taxes in the future will be lower because of lower interest charges.
Correct Answer:
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Q7: In a year when government spending is
Q8: In a year when government spending is
Q9: The relationship between the government's debt and
Q10: Each of the following is a reason
Q11: A rising government debt
A) tends to increase
Q13: A rising government debt
A) tends to increase
Q14: A rising government debt
A) tends to increase
Q15: A decreasing government debt
A) tends to increase
Q16: A decreasing government debt
A) tends to decrease
Q17: A decreasing government debt
A) tends to decrease
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