A deficit is sustainable only if
A) the associated equilibrium debt-to-GDP ratio is high enough to attract risk adverse investors.
B) the associated equilibrium debt-to-GDP ratio is low enough that investors judge the debt safe enough to buy and hold.
C) the associated equilibrium debt-to-GDP ratio is high enough that investors judge the debt safe enough to buy and hold.
D) it is equal to zero.
Correct Answer:
Verified
Q43: The higher the debt-to-GDP ratio,
A) the less
Q44: The higher the debt-to-GDP ratio,
A) the less
Q45: The lower the debt-to-GDP ratio,
A) the less
Q46: The lower the debt-to-GDP ratio,
A) the less
Q47: The higher the debt-to-GDP ratio,
A) the more
Q49: Each of the following is a possible
Q50: The United States debt-to-GDP ratio reached its
Q51: The United States debt-to-GDP ratio reached its
Q52: The only three time periods in which
Q53: The almost doubling of the debt-to-GDP ration
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