Multiple Choice
In order for the government to sustain a primary deficit forever,
A) real GDP must grow faster than the real interest rate.
B) real GDP must grow slower than the real interest rate.
C) it must borrow from other governments.
D) it must eventually lend to other governments.
E) real GDP must grow at the same rate as the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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