If an economist were interested in testing whether government budget deficits had been the cause of excessive monetary growth for a country for the period 1950-2000,she would examine the behavior of
A)the ratio of government spending to GDP.
B)the money supply-to-monetary-base ratio.
C)interest rates.
D)the government debt-to-GDP ratio.

Question

Quizplus · Accepted Answer

The government debt-to-GDP ratio would provide insight into whether budget deficits have led to increased borrowing and potentially excessive monetary growth.

If an Economist Were Interested in Testing Whether Government Budget