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All Else Equal, a Rise in the Debt- To- GDP

Question 5

Multiple Choice

All else equal, a rise in the debt- to- GDP ratio implies:


A) a greater surplus is needed to prevent further rises in the debt- to- GDP ratio.
B) a greater difference between the official and correct measures of the deficit as a fraction of GDP.
C) a greater ratio of interest payments to GDP.
D) All of the above.
E) None of the above.

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