Which of the following should economic policymakers consider to be associated with large deficits and a large debt-to-GDP ratio?

Question

Quizplus · Accepted Answer

All of the factors listed are important considerations for economic policymakers when dealing with large deficits and a high debt-to-GDP ratio. A focus on economic growth is important to ensure that the economy is strong enough to sustain the debt burden. High inflation or default is a possibility when there is too much government borrowing, which could harm the economy. Intergenerational equity is important to ensure that future generations are not unfairly burdened by current debt. Finally, deficits can crowd out private investment, which can harm long-term economic growth.

Which of the Following Should Economic Policymakers Consider to Be