In Our Two-Period Model,the Government Must Pay Off All Debt,in

question 22

Multiple Choice

In our two-period model,the government must pay off all debt,in reality

• A) this is approximately correct.
• B) only developing countries can perpetually run deficits.
• C) governments take longer than two-periods to pay off debt, but almost always do.
• D) only countries in the European Union are unlikely to ever pay off their debt.
• E) governments rarely pay off all of their debt.