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The Growth-Reducing Effects of High Public Debt Are Transmitted Entirely

question 36

True/False

The growth-reducing effects of high public debt are transmitted entirely through high real interest rates on that debt.


Definitions:

Plato

An ancient Greek philosopher who founded the Academy in Athens and is a pivotal figure in the development of Western philosophy, especially in terms of metaphysics, epistemology, and ethics.

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher known for his influence on the Enlightenment in France and across Europe.

State of Nature

A philosophical concept describing the hypothetical condition of humanity before the establishment of society and laws.

Legitimate Political Power

Authority or power in political systems that is recognized as right and proper, often established through laws, social norms, or consensus.

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