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Which of the Following Statements Is Correct

Question 1

Multiple Choice

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:

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