A higher deficit in the current year will lead to increased debt in the future only if:
A) the deficit is greater than the previous year's deficit.
B) future primary surpluses are less than the interest payment.
C) it causes an increase in private saving.
D) the deficit- to- GDP ratio is greater than the debt- to- GDP ratio.
E) it causes a fall in private saving.
Correct Answer:
Verified
Q2: In the hyperinflations between World War I
Q3: In the medium run, a fiscal expansion
Q4: The debt- to- GDP ratio is higher:
A)
Q5: In virtually all hyperinflations, rapid money growth
Q6: When the budget deficit is financed entirely
Q7: A rule of thumb for Australia is
Q8: In the short run, a fiscal contraction
Q9: Which of the following is an entitlement
Q10: In the medium run, a fiscal contraction
Q11: Assume that real money balances do not
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