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:

Manage Your Anger

Techniques or strategies aimed at controlling feelings of anger and preventing it from negatively impacting one’s behavior and relationships.

Dangerous Levels

Degrees or extents of risk that are considered harmful and potentially life-threatening to individuals or environments.

Specific Triggers

Particular events, situations, or stimuli that elicit a response or reaction.

Mindfulness

The quality or practice of maintaining a non-judgmental state of heightened or complete awareness of one's thoughts, emotions, or experiences on a moment-to-moment basis.