A higher deficit in the current year will lead to increased debt ...

[ss2343]

A higher deficit in the current year will lead to increased debt in the future only if
 
  A) the deficit is greater than the previous year's deficit.
  B) the deficit-to-GDP ratio is greater than the debt-to-GDP ratio.
  C) it causes a drop in private saving.
  D) it causes an increase in private saving.
  E) none of the above

Question 2

The primary deficit is
 
  A) government spending minus interest on the debt.
  B) government spending minus net tax revenues.
  C) government spending plus interest on the debt minus net tax revenues.
  D) government spending plus net tax revenues minus interest on the debt.
  E) interest on the debt minus net tax revenues.

[Tabitha_2016]

Answer to Question 1

E

Answer to Question 2

B

[ss2343]

Thank you

[Tabitha_2016]

No problemo