The Government Can Meet Its Interest Bill Without Having to Levy

question 148

Multiple Choice

The government can meet its interest bill without having to levy taxes if it issues more bonds and if the

• A)economy's real growth rate of output is greater than the real interest rate.
• B)economy's real growth rate of output is equal to the nominal interest rate.
• C)economy's real growth rate of output equals or exceeds its real interest rate.
• D)economy's nominal growth rate of output equals or exceeds its real interest rate.

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Definitions:

Random Assignment

A method used in experiments where participants are allocated to different groups purely by chance, minimizing bias and equalizing other variables.

Experimental Design

A research strategy that involves manipulating one or more variables to determine their effect on a dependent variable while controlling other factors.

Maturation

The process of growth or development over time, which can influence outcomes in longitudinal studies due to naturally occurring changes within the subjects being studied.

Experimental Design

A structured research approach that manipulates one variable to determine its effect on another variable, allowing for causal inferences.