Multiple Choice
Debt needs to be judged relative to assets because:
A) private investment is always more productive than government investment.
B) all assets provide interest payments to pay the debt.
C) assets can increase the ability of a country to repay a debt.
D) assets are always depreciating.
Correct Answer:

Verified
Correct Answer:
Verified
Q30: In several years, bondholders may lose confidence
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
Q36: Deficits and debt are often measured relative
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,
Q39: What is the difference between a passive
Q40: What is the debt service?