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

question 11

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

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Definitions:

Narcissistic Personality Disorder

A personality disorder marked by a broad pattern of grandiosity, need for admiration, and lack of empathy.

Thinks Highly

To have a very favorable or positive opinion about someone or something.

Detached

Non-involved or emotionally disengaged, often used to describe a person's demeanor or a method of observation.

Reclusive

Characteristic of a person who lives in solitude, avoiding contact with other people and often withdrawing from the society.