Consider a government with a positive stock of debt. If the growth rate of real GDP exceeds the real rate of interest on government bonds, then to keep the debt- to- GDP ratio constant the
A) government must implement an expansionary fiscal policy.
B) nominal interest rate must be constant.
C) money supply should be increased at a constant rate.
D) government must have a primary budget deficit.
E) government must have a primary budget surplus.
Correct Answer:
Verified
Q79: The diagram below shows the budget deficit
Q80: The government's primary budget deficit (or surplus)is
Q81: An annually balanced government budget is a
A)stabilizer
Q82: The government's annual primary budget deficit is
Q83: Consider an open- economy AD/AS macro model.
Q85: Suppose that in Year 2 there was
Q86: Implementation of cyclically balanced government budgets
A)is successfully
Q87: Until the onset of the most recent
Q88: The extent to which tax revenues are
Q89: The budget deficit function is graphed with
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents