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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    If a Government's Debt Is Increasing but Its GDP Is
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If a Government's Debt Is Increasing but Its GDP Is

Question 85

Question 85

Multiple Choice

If a government's debt is increasing but its GDP is increasing faster, the government's:


A) total debt is falling.
B) ratio of debt to GDP is falling.
C) deficit is falling.
D) ability to pay is falling.

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