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The Accumulated Stock of Government Debt Will Begin to Fall

Question 14

Multiple Choice

The accumulated stock of government debt will begin to fall


A) when the government's annual budget is in deficit.
B) if the government does not borrow money.
C) if the government's debt- service payments are zero.
D) if the growth rate of real GDP is higher than the real interest rate.
E) when the government's annual budget is in surplus.

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