Consider the Following Data About Government Debt and Deficit in a Given

question 73

Multiple Choice

Consider the following data about government debt and deficit in a given year: - real interest rate on government bonds = 2%
- growth rate of real GDP = 3%
- current debt- to- GDP ratio = 50%
- primary budget deficit = 0
Over this one- year period the debt- to- GDP ratio will have

• A)fallen by 50 percent.
• B)risen by 0.5 percentage points.
• C)fallen by 0.5 percentage points.
• D)risen by 50 percent.
• E)remained unchanged.

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Definitions:

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A mental health disorder characterized by persistent feelings of sadness, loss, or anger that interfere with daily activities.