Even Though the National Debt Is Rising, the Debt-To-GDP Ratio

question 9

Multiple Choice

Even though the national debt is rising, the debt-to-GDP ratio will fall as long as

• A)interest payments on the national debt as a fraction of government spending remain constant
• B)the real interest rate exceeds the economic growth rate and the primary budget is balanced
• C)the real interest rate is lower than the economic growth rate and the primary deficit is zero
• D)the debt is growing more slowly than the federal budget deficit
• E)the primary budget deficit as a share of GDP is not growing

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