Suppose the Government's Objective Is to Hold Its Debt-To-GDP Ratio

question 112

Multiple Choice

Suppose the government's objective is to hold its debt-to-GDP ratio constant at its current level of 30%.If the real interest rate on government bonds is 4% and the growth rate of real GDP is 2%,the government must

• A)run a primary budget deficit of 0.6% of GDP.
• B)run an overall budget deficit of 6.0% of GDP.
• C)run an overall budget surplus of 6.0% of GDP.
• D)run a primary budget surplus of 0.6% of GDP.
• E)balance the overall budget.

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Definitions:

Incentive Spirometry

A medical device used to help patients improve the functioning of their lungs through guided deep breaths.

Postoperative Exercises

Physical activities and exercises prescribed after surgery to aid in recovery, improve function, and prevent complications.

Preoperative Anxiety

Anxiety or fear experienced by a patient prior to undergoing a surgical procedure.

Therapeutic Relationship

A professional bond between a healthcare provider and a client that is focused on enhancing the client’s well-being and therapeutic outcomes.