Multiple Choice
Assume that seigniorage and the government's primary deficit are both zero.If the real interest rate is less than the growth rate of real GDP,fiscal policy ________,and if the real interest rate is greater than the growth rate of real GDP,fiscal policy ________.
A) is sustainable; may be sustainable
B) is unsustainable; is sustainable
C) is sustainable; is unsustainable
D) is unsustainable; may be sustainable
Correct Answer:
Verified
Correct Answer:
Verified
Q30: Table 15.1<br> <span class="ql-formula" data-value="\begin{array}{l|r}\text
Q31: Of the primary tax sources of revenue
Q32: Assume that seigniorage and the government's primary
Q33: Of the primary tax sources of revenue
Q34: The debt-to-GDP ratio decreases when the primary
Q36: Table 15.1<br> <span class="ql-formula" data-value="\begin{array}{l|r}\text
Q37: If the government decreases income taxes by
Q38: Suppose the government cuts taxes by $300
Q39: When the nominal interest rate is constant,_
Q40: A decrease in the inflation rate will