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

question 13

Multiple Choice

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

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

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Definitions:

Job Enrichment Programs

Initiatives designed to enhance job satisfaction and performance by adding more meaningful tasks and giving employees more control over their work.

Extrinsic Rewards

Benefits provided by the employer or an outside source, which serve as motivation for employees beyond internal satisfaction.

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people either within or outside the organization.

Job Enlargement

A human resource strategy where additional tasks of similar skill level are added to a worker's responsibilities to increase job diversity and employee motivation.