Suppose the Budget Deficit Is Rising 3 Percent Per Year

question 16

Multiple Choice

Suppose the budget deficit is rising 3 percent per year and nominal GDP is rising 5 percent per year.The debt created by these continuing deficits is

• A)sustainable,but the future burden on your children cannot be offset.
• B)sustainable,and the future burden on your children can be offset if you save for them.
• C)not sustainable,and the future burden on your children cannot be offset.
• D)not sustainable,but the future burden on your children can be offset if you save for them.

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Definitions:

Standardized Scoring

A method of assessment that uses uniform procedures to ensure consistent scoring across different evaluators or test instances.

Structured Interviews

Structured interviews are a systematic way of asking questions in which the interviewer follows a set sequence and the questions are predetermined to ensure consistency across all interviews.

Subjective Judgments

Subjective Judgments are opinions or decisions based on personal feelings, tastes, or opinions rather than objective facts or evidence.

Unstructured Interviews

Unstructured Interviews are qualitative interviews without a set script or format, allowing for open-ended responses and a flexible discussion.