Multiple Choice
If a $10 trillion economy is growing at a real rate of 2.5 percent a year, what must this economy do to maintain a constant debt-to-GDP ratio?
A) Run increasingly larger surpluses
B) Maintain a balanced budget
C) Have increasingly smaller deficits
D) Have increasingly larger deficits
Correct Answer:

Verified
Correct Answer:
Verified
Q5: Which of the following statements gives the
Q6: Debt is measured relative to GDP because:<br>A)the
Q7: Suppose that the economy has a structural
Q8: As the interest rate rises, debt service:<br>A)decreases.<br>B)does
Q9: If the nominal deficit is $100 billion,
Q11: Suppose potential income is $60 billion, actual
Q12: How does Social Security make the current
Q13: When the U.S. debt-to-GDP ratio has fallen,
Q14: Government debt is defined as:<br>A)a shortfall of
Q15: The structural deficit:<br>A)rises as the economy expands