Multiple Choice
Suppose the budget deficit is rising 4 percent per year and nominal GDP is rising 7 percent per year. How are the debt and the burden on future generations created by these continuing deficits?
A) The debt is sustainable, but the future burden on your children cannot be offset.
B) The debt is not sustainable, and the future burden on your children cannot be offset.
C) The debt is sustainable, and the future burden on your children can be offset if you save for them.
D) The debt is not sustainable, but the future burden on your children can be offset if you save for them.
Correct Answer:
Verified
Correct Answer:
Verified
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