Homework Help is Here – Start Your Trial Now!
Business
Economics
The stock of government debt will continue to rise unless the government... O a. Increases its taxes. O b. Runs a budget surplus. O c. Decreases its expenditures. O d. Decreases the size of its transfers. O e. Runs a budget deficit.

The stock of government debt will continue to rise unless the government... O a. Increases its taxes. O b. Runs a budget surplus. O c. Decreases its expenditures. O d. Decreases the size of its transfers. O e. Runs a budget deficit.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Please answer both. I have no more question please. I will rate 

The stock of government debt will continue to rise unless the government... O a. Increases its taxes. O b. Runs a budget surplus. O c. Decreases its expenditures. O d. Decreases the size of its transfers. O e. Runs a budget deficit.
Transcribed Image Text:The stock of government debt will continue to rise unless the government... O a. Increases its taxes. O b. Runs a budget surplus. O c. Decreases its expenditures. O d. Decreases the size of its transfers. O e. Runs a budget deficit.
Suppose the government's objective is to hold its debt-to-GDP ratio constant at its current level of 30 percent. If the reai interest rate on government bonds is four percent and the growth rate of real GDP is two percent, then the government must run. O a. An overall budget surplus of 6.0 percent of GDP O b. A primary budget deficit of 0.6 percent of GDP. O c. A primary budget surplus of 0.6 percent of GDP. O d. A balanced budget. O e. An overall budget deficit of 6.0 percent of GDP
Transcribed Image Text:Suppose the government's objective is to hold its debt-to-GDP ratio constant at its current level of 30 percent. If the reai interest rate on government bonds is four percent and the growth rate of real GDP is two percent, then the government must run. O a. An overall budget surplus of 6.0 percent of GDP O b. A primary budget deficit of 0.6 percent of GDP. O c. A primary budget surplus of 0.6 percent of GDP. O d. A balanced budget. O e. An overall budget deficit of 6.0 percent of GDP
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Inflation and Unemployment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS