A Debt That Rises Faster Than Nominal GDP Will Impose

question 82

Multiple Choice

A debt that rises faster than nominal GDP will impose the following opportunity costs in the future:

• A) A permanently higher tax burden.
• B) A period of inflation.
• C) Reduced government outlays relative to GDP
• D) Higher taxes relative to GDP.
• E) All of the above.

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Definitions:

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

State Action

Activities or actions taken by government bodies or officials, covered by legal and constitutional protections.

Property Right

Legal rights to possess, use, and dispose of assets or properties.

State University

A public university that is primarily funded and operated by a state government.