Solved

Increasing Government Debt Relative to GDP Does Not Cause Which

Question 84

Multiple Choice

Increasing government debt relative to GDP does not cause which of the following?


A) crowding out
B) an opportunity cost for the funds used to service the debt
C) the possibility of higher taxes in the future
D) lower interest repayments relative to the size of GDP

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q58: Expansionary fiscal policy _ the price level

Q79: A cut in tax rates affects equilibrium

Q80: To help fight a recession, the government

Q81: Use the dynamic aggregate demand and aggregate

Q82: Calculate the government purchases multiplier if the

Q83: The increase in revenue taxation received by

Q85: If workers fail to believe that rising

Q86: Long lags associated with the legislative process

Q87: 'Crowding out' will be smaller if:<br>A)consumption spending

Q89: A law requiring the government to balance