Austria runs a gov budget surplus, and it has a small debt to GDP ratio. This year, however, Austria is running a government budget deficit, and it is financing that deficit by selling government bonds. This year's government budget deficit is causing interest rates to (increase / decrease/ remain the same /change ambiguously) and the debt to (increase/ decrease /remain the same/ change ambiguously).
Austria runs a gov budget surplus, and it has a small debt to GDP ratio. This year, however, Austria is running a government budget deficit, and it is financing that deficit by selling government bonds. This year's government budget deficit is causing interest rates to (increase / decrease/ remain the same /change ambiguously) and the debt to (increase/ decrease /remain the same/ change ambiguously).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Austria runs a gov budget surplus, and it has a small debt to
This year's government budget deficit is causing interest rates to (increase / decrease/ remain the same /change ambiguously) and the debt to (increase/ decrease /remain the same/ change ambiguously).
2. Austria is predicted to return to a surplus position next year. If it is successful, interest rates will (increase / decrease/ remain the same /change ambiguously) and the debt will (increase /decrease/ remain the same/ change ambiguously).
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