The "solvency condition" states that the debt-GDP ratio will rise continuously so long as
A) the real GDP growth rate exceeds the real interest rate.
B) the real interest rate exceeds the real GDP growth rate.
C) the real interest rate exceeds the nominal interest rate.
D) the nominal interest rate exceeds the cost of borrowing.
B
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Which of the following increases the demand for a good or service?
A) a fall in the price of the good or service B) a smaller number of consumers wanting to buy the good or service C) a rise in the price of the good or service D) a rise in the price of a substitute good or service E) a rise in the price of a complement
Which one of the following will not cause the production possibilities curve to shift outward?
a. increased education b. the construction of a new factory c. more tractors becoming available to farmers d. All of the above cause the production possibilities curve to shift outward.