Suppose the country of Piedmont borrows money to start a brand-new infrastructure program. GDP is currently $400 billion. The plan will take the public debt from $250 billion to $350 billion in ten years, when GDP is projected to be $425 billion. What is the projected debt in ten years as a percentage of GDP?
A) 59 percent
B) 62.5 percent
C) 70 percent
D) 82.4 percent
Correct Answer:
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A) tax
Q88: A budget deficit is the:
A) amount of
Q89: A budget surplus is the:
A) amount of
Q90: During a recession, government deficits grow because:
A)
Q92: All else equal, Ricardian equivalence predicts:
A) a
Q93: All else equal, Ricardian equivalence predicts that
Q94: Ricardian equivalence will fail to hold if:
A)
Q95: The government budget includes money:
A) coming in
Q96: Economists express the budget deficit:
A) as a
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