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The Higher the Debt-To-GDP Ratio

Question 47

Multiple Choice

The higher the debt-to-GDP ratio,


A) the more likely is the government to resort to inflation as a means to reduce the real burden of the debt.
B) the less likely is the government to resort to inflation as a means to reduce the real burden of the debt.
C) the more likely is the government to resort to inflation as a means to increase the real burden of the debt.
D) the less likely is the government to resort to inflation as a means to increase the real burden of the debt.

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