Under What Condition Can the U

Multiple Choice

Under what condition can the U.S.government continue to pay interest on a rising debt without eventually needing to increase the average tax rate?

A) If the national debt grows at the same rate as nominal GDP
B) If the nominal interest on the national debt grows faster than nominal GDP
C) If the total interest payments on the national debt grow faster than nominal GDP
D) If the national debt grows faster than nominal GDP
E) If the real interest on the national debt grows faster than real GDP.