Multiple Choice
If annual GDP growth is .10,the interest rate is .05,there is no price inflation,and the government wants to keep national debt at 60% of GDP,then each year the government must run a
A) primary deficit equal to 3% of national income
B) primary deficit equal to 2% of national income
C) primary deficit equal to 1% of national income
D) primary surplus equal to 2% of national income
E) primary surplus equal to 3% of national income
Correct Answer:
Verified
Correct Answer:
Verified
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