A fiscal policy is considered sustainable when the debt-to-GDP ratio is ________, and it is considered unsustainable when the debt-to-GDP ratio is ________

In the early 1930s

A) countries that abandoned the gold standard suffered severe inflation. B) countries that tried to defend the gold standard suffered more depression than countries that abandoned the gold standard. C) the gold standard was abandoned by every major industrial country except England. D) the United States was the first major industrial country to abandon the gold standard.

Under which of the following assumptions would the nominal interest rate be equal to the real interest rate?

A) Expected inflation is equal to the nominal interest rate. B) Expected inflation is equal to the real interest rate. C) Expected inflation is negative. D) Expected inflation is equal to zero. E) none of the above