Solved

Even Though the National Debt Is Rising, the Debt-To-GDP Ratio

Question 25

Multiple Choice

Even though the national debt is rising, the debt-to-GDP ratio will fall as long as


A) interest payments on the national debt as a fraction of government spending remain constant
B) the real interest rate exceeds the economic growth rate and the primary budget is balanced
C) the real interest rate is lower than the economic growth rate and the primary deficit is zero
D) the debt is growing more slowly than the federal budget deficit
E) the primary budget deficit as a share of GDP is not growing

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents