Which of the Following Statements Is Correct

question 34

Multiple Choice

Which of the following statements is correct?

• A)the economy's capacity to pay off its debt can grow over time
• B)the government cannot run a budget deficit forever, because productivity cannot increase over time
• C)as long as the government debt grows faster than the economy's income, government deficits can grow forever
• D)as long as the government debt grows more slowly than the economy's income, government deficits cannot grow forever

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