Author Question: All else equal, a rise in the debt-to-GDP ratio implies A) a greater ratio of interest payments ... (Read 110 times)

dbose · **on:** Jun 30, 2018

All else equal, a rise in the debt-to-GDP ratio implies

A) a greater ratio of interest payments to GDP.
B) a greater difference between the official and correct measures of the deficit as a fraction of GDP.
C) a greater surplus is needed to prevent further rises in the debt-to-GDP ratio.
D) all of the above
E) none of the above

Question 2

The official measure of the deficit becomes more inaccurate as

A) the inflation rate rises.
B) the total debt falls.
C) taxes rise.
D) all of the above
E) none of the above