Which of the following statements is correct?
A) the economy's capacity to pay off its debt can grow over time
B) the government cannot run a budget deficit forever, because productivity cannot increase over time
C) as long as the government debt grows faster than the economy's income, government deficits can grow forever
D) as long as the government debt grows more slowly than the economy's income, government deficits cannot grow forever
Correct Answer:
Verified
Q2: Which of the following is not the
Q3: Inflation confers benefit to society, and it
Q4: Fiscal policy works with a lag because
Q5: Which of the following is the main
Q6: Although price stability may be desirable, the
Q7: A nation's saving rate is a key
Q8: Which of the following is the benefit
Q9: In the 1970s, the Australian government decided
Q10: The budget deficit is a major piece
Q11: The main advantage of making monetary policy
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