If the federal government runs a budget deficit, but the budget deficit as a percent of GDP is less than the growth rate of real output, the:

a. national debt will decrease as a share of GDP.
b. national debt will remain a constant share of GDP.
c. national debt will increase as a share of GDP.
d. size of the national debt (in dollar value) will decline.

a

Economics

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If people expect real estate prices to increase significantly, the ________ curve for bonds will shift to the ________, everything else held constant

A) demand; right B) demand; left C) supply; left D) supply; right

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A machine cost $15,000 to install, and has a resale value one year later of $12,000. If the real interest rate is 10%, then the user cost of capital is ________

A) $4,500 B) $1,500 C) $3,000 D) $1,200

Economics