In Our Two-Period Model, the Government Must Pay Off All

Multiple Choice

In our two-period model, the government must pay off all debt, in reality

A) this is approximately correct.
B) governments rarely pay off all of their debt.
C) only developing countries can perpetually run deficits.
D) governments take longer than two-periods to pay off debt, but almost always do.
E) only countries in the European Union are unlikely to ever pay off their debt.