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If a Country Had a Rule That Required the Ratio

Question 139

Multiple Choice

If a country had a rule that required the ratio of debt to GDP to be constant, it would necessarily have to run a surplus if


A) real GDP rose and the inflation rate were positive.
B) real GDP rose and the inflation rate were negative.
C) real GDP fell and the inflation rate were positive.
D) real GDP fell and the inflation rate were negative.

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