Author Question: The debt-to-GDP ratio is higher, A) the lower the real interest rate. B) the lower is the ratio ... (Read 106 times)

cabate · **on:** Jun 30, 2018

The debt-to-GDP ratio is higher,

A) the lower the real interest rate.
B) the lower is the ratio of the primary deficit to GDP.
C) the higher is the growth rate of output.
D) all of the above
E) none of the above

Question 2

The debt-to-GDP ratio will tend to decline over time when

A) r > g.
B) r < g.
C) the primary deficit increases.
D) the initial level of debt increases.