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    Principles of Macroeconomics
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    Exam 12: Government and Fiscal Policy
  5. Question
    Suppose a Country's Debt Rises by 6% and Its GDP
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Suppose a Country's Debt Rises by 6% and Its GDP

Question 8

Question 8

Multiple Choice

Suppose a country's debt rises by 6% and its GDP rises by 8%. What happens to the debt-GDP ratio?


A) It rises if there is a budget deficit that period.
B) It falls.
C) It rises.
D) There is insufficient information to answer the question.

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