A decreasing government debt
A) tends to increase capital formation.
B) tends to decrease the economy's long-run balanced-growth path.
C) tends to decrease the balanced-growth GDP per worker.
D) means that taxes in the future will be higher to pay higher interest charges.
Correct Answer:
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Q10: Each of the following is a reason
Q11: A rising government debt
A) tends to increase
Q12: A rising government debt
A) tends to decrease
Q13: A rising government debt
A) tends to increase
Q14: A rising government debt
A) tends to increase
Q16: A decreasing government debt
A) tends to decrease
Q17: A decreasing government debt
A) tends to decrease
Q18: A decreasing government debt
A) tends to decrease
Q19: An increase in government purchases
A) shifts the
Q20: An increase in government purchases
A) shifts the
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