A Major Reason to Be Concerned About Any U

Multiple Choice

A major reason to be concerned about any U.S.budget deficit is that

A) if it were maintained, it would lead to an ever-increasing debt-to-GDP ratio.
B) it would exacerbate the problem of the low U.S. saving rate.
C) under current legislation, it would lead to budget surpluses in the future.
D) if it were to increase, Ricardian equivalence will no longer hold.
E) since large deficits are associated with wars, the deficit might encourage the U.S. to become more adventuristic in its foreign policy.