A decreasing government debt
A) tends to decrease 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 lower because of lower interest charges.
Correct Answer:
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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
Q19: An increase in government purchases
A) shifts the
Q20: An increase in government purchases
A) shifts the
Q21: A change in government tax policy that
Q22: The right measure of fiscal policy is
A)
Q23: An increase in the full-employment deficit
A) shifts
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