Choose the statement that is incorrect.
A) The federal government debt was 5 percent of GDP in 1970.
B) The debt-to-GDP ratio increased slightly during the 2008-2009 recession.
C) The debt-to-GDP ratio increased from 1974 through 1997, and then began to decrease.
D) The government debt increases when the government has a budget deficit.
E) As a percentage of real GDP, the federal government debt was greater in 2014 than in 1970.
Correct Answer:
Verified
Q12: If outlays exceed revenues, the government's budget
Q13: Suppose the government starts with a debt
Q14: If revenues exceed outlays, the government's budget
Q15: All of the following statements are true
Q16: Fiscal policy is
A)the use of the federal
Q18: The main components of government revenues are
A)transfer
Q19: Government debt is
A)equal to revenues minus outlays.
B)always
Q20: The largest source of revenues for the
Q21: If we compare the United States to
Q22: An increase in income taxes
A)does not affect
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