Multiple Choice
Deficits and debt are often measured relative to GDP because:
A) this method always makes them appear smaller.
B) this method always makes them appear larger.
C) the government's ability to repay the debt depends on GDP.
D) the growth in GDP depends on the debt.
Correct Answer:

Verified
Correct Answer:
Verified
Q31: In the formula to calculate the real
Q32: GDP provides an indication of:<br>A)how much interest
Q33: Which of the following statements is true?<br>A)The
Q34: If the debt of the federal government
Q35: Debt needs to be judged relative to
Q37: In the long-run framework, deficits reduce:<br>A)investment.<br>B)government consumption.<br>C)taxes.<br>D)subsidies.
Q38: If the real deficit is $200 billion,
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Q41: A country that is running a budget