Under which condition can the government continue to accumulate debt?

Question

Quizplus · Accepted Answer

If the economy is growing faster than the accumulated debt, the size of the debt relative to the economy is decreasing. This makes it easier for the government to continue accumulating debt, as lenders are more likely to view the government as a less risky borrower. Options A, B, and D are not sufficient conditions for the government to continue accumulating debt, as they do not address the sustainability of the debt level. Option E is not a valid answer, as it does not provide an explanation.

Under Which Condition Can the Government Continue to Accumulate Debt