Under what condition can the U.S. government continue to pay interest on a rising debt without eventually needing to increase the average tax rate?
a. If the national debt grows at the same rate as nominal GDP
b. If the nominal interest on the national debt grows faster than nominal GDP
c. If the total interest payments on the national debt grow faster than nominal GDP
d. If the national debt grows faster than nominal GDP
e. If the real interest on the national debt grows faster than real GDP
A
You might also like to view...
The three approaches to measuring economic activity are the
A) cost, income, and expenditure approaches. B) product, income, and expenditure approaches. C) consumer, business, and government approaches. D) private, public, and international approaches.
Applied research: a. is designed to answer particular questions
b. is more open-ended than basic research. c. contributes less to visible output changes than does basic research. d. is research done by a firm to market a good. e. is research done by a firm during the production of a good.