All Else Equal, a Rise in the Debt- To- GDP

question 5

Multiple Choice

All else equal, a rise in the debt- to- GDP ratio implies:

• A) a greater surplus is needed to prevent further rises in the debt- to- GDP ratio.
• B) a greater difference between the official and correct measures of the deficit as a fraction of GDP.
• C) a greater ratio of interest payments to GDP.
• D) All of the above.
• E) None of the above.

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