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

---

Definitions:

Congenital Acetabular Dysplasia

A developmental disorder of the hip joint where the acetabulum is inadequately developed, leading to instability and potential dislocation of the hip.

Comminuted Fracture

A type of bone fracture where the bone is broken into three or more pieces, often requiring surgical intervention for proper healing.

Blowout Fracture

A fracture of the bones surrounding the eye, often caused by blunt trauma.

Depressed Skull

Refers to a portion of the skull that has been pushed inward, often due to trauma.