The debt-to-GDP ratio decreases when the primary deficit ________ or when seigniorage ________

The use of discretionary fiscal policy is hampered by

i. difficulty of estimating the level of potential GDP. ii. lack of accuracy of economic forecasts. iii. the small impact tax cuts and increases in government expenditure have on aggregate demand. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii

The prisoner's dilemma arises when people have an incentive to let others pay for the public good and then take advantage of those purchases made by others

a. True b. False Indicate whether the statement is true or false