If the Government Runs a Primary Deficit in Year Zero

question 74

Multiple Choice

If the government runs a primary deficit in year zero of B0,and decides to repay it in year t (i.e.,bring the debt back down to its pre-existing level) ,then in year t it must run a primary surplus equal to

• A)zero.
• B)one.
• C)B0.
• D)B0(1+r).
• E)none of the above

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, usually expressed as a percentage.

Brand Identity

The visible elements of a brand, such as color, design, and logo, that identify and distinguish the brand in consumers' minds.

Brand Extension

The practice of using an existing brand name on a new product in a different category to leverage brand equity.

Brand Equity

The value and strength of a brand that determines its worth, based on consumer recognition, preferences, and loyalty.