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A Higher Deficit in the Current Year Will Lead to Increased

Question 19

Multiple Choice

A higher deficit in the current year will lead to increased debt in the future only if:


A) the deficit is greater than the previous year's deficit.
B) future primary surpluses are less than the interest payment.
C) it causes an increase in private saving.
D) the deficit- to- GDP ratio is greater than the debt- to- GDP ratio.
E) it causes a fall in private saving.

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