Under What Condition Can the U

question 19

Multiple Choice

Under what condition can the U.S.government continue to pay interest on a rising debt without eventually needing to increase the average tax rate?

• A) If the national debt grows at the same rate as nominal GDP
• B) If the nominal interest on the national debt grows faster than nominal GDP
• C) If the total interest payments on the national debt grow faster than nominal GDP
• D) If the national debt grows faster than nominal GDP
• E) If the real interest on the national debt grows faster than real GDP.

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Definitions:

Reflexive Behavior

Automatic responses or actions triggered without conscious thought, typically as a physiological reaction to stimuli.

Neurological Deficit

A measurable impairment in the functioning of the nervous system, affecting sensory and motor abilities.

Paid Maternity Leave

Employment benefit that provides pay to women during a period of absence from work in the weeks before and after childbirth.

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The feeding of babies and young children with milk directly from female human breasts rather than from a baby bottle or other container.