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Suppose the Budget Deficit Is Rising 3 Percent Per Year

Question 16

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 your children cannot be offset.
B) sustainable,and the future burden on your children can be offset if you save for them.
C) not sustainable,and the future burden on your children cannot be offset.
D) not sustainable,but the future burden on your children can be offset if you save for them.

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