Suppose the Budget Deficit Is Rising 3 Percent Per Year

Multiple Choice

Suppose the budget deficit is rising 3 percent per year and nominal GDP is rising 5 percent per year. The debt created by these continuing deficits is

A) sustainable, but the future burden on future generations cannot be offset.
B) sustainable, and the future burden on future generations can be offset if the current generation saves enough for them.
C) not sustainable, and the future burden on future generations cannot be offset.
D) not sustainable, but the future burden on future generations can be offset if the current generation saves enough for them.