What makes it conceivable for a country to experience constant debt to GDP ratio

Question

What makes it conceivable for a country to experience constant debt to GDP ratio and at the same time experience continual government budget deficits is:

Question 20 options:

positive private savings.

trade surpluses.

continual inflation.

real economic growth.

Government budget surplus or deficit is:

Question 21 options:

well defined and straightforward to measure.

well defined but frequently distorted by creative but improper accounting practices.

difficult to measure and can be defined legitimately in several ways.

so arbitrarily defined that it is meaningless.

A rise in the government budget deficit will have a :

Question 22 options:

more negative effect on income when crowding out is weak.

more positive effect on income when crowding out is strong.

less negative effect on income when crowding out is weak.

less positive effect on income when crowding out is strong.

positive private savings.

trade surpluses.

continual inflation.

real economic growth.

Explanation / Answer

Answer 20

correct answer (d) Real economic growth

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