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Assuming Seigniorage Equals Zero,the Federal Debt Is ________ and the Budget

Question 5

Multiple Choice

Assuming seigniorage equals zero,the federal debt is ________ and the budget deficit is ________.


A) a flow variable representing the total value of government bonds outstanding; a stock variable representing the yearly increase in value of newly issued government bonds
B) a stock variable representing the total value of government bonds outstanding; a flow variable representing the yearly increase in value of newly issued government bonds
C) a flow variable representing the yearly increase in value of newly issued government bonds; a stock variable representing the total value of government bonds outstanding
D) a stock variable representing the yearly increase in value of newly issued government bonds; a flow variable representing the total value of government bonds outstanding

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