Please answer both. I have no more question please. I will rate The stock of government debt will continue to rise unless the government...O a. Increases its taxes.O b. Runs a budget surplus.O c. Decreases its expenditures.O d. Decreases the size of its transfers.O e. Runs a budget deficit. Suppose the government's objective is to hold its debt-to-GDP ratio constant at its current level of 30 percent. If the reai interest rate on governmentbonds is four percent and the growth rate of real GDP is two percent, then the government must run.O a. An overall budget surplus of 6.0 percent of GDPO b. A primary budget deficit of 0.6 percent of GDP.O c. A primary budget surplus of 0.6 percent of GDP.O d. A balanced budget.O e. An overall budget deficit of 6.0 percent of GDP

The stock of government debt will continue to rise unless the government... O a. Increases its taxes. O b. Runs a budget surplus. O c. Decreases its expenditures. O d. Decreases the size of its transfers. O e. Runs a budget deficit.

The stock of government debt will continue to rise unless the government... O a. Increases its taxes. O b. Runs a budget surplus. O c. Decreases its expenditures. O d. Decreases the size of its transfers. O e. Runs a budget deficit.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 6PA

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Concept explainers

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.

Question

Please answer both. I have no more question please. I will rate

The stock of government debt will continue to rise unless the government...
O a. Increases its taxes.
O b. Runs a budget surplus.
O c. Decreases its expenditures.
O d. Decreases the size of its transfers.
O e. Runs a budget deficit.

Suppose the government's objective is to hold its debt-to-GDP ratio constant at its current level of 30 percent. If the reai interest rate on government
bonds is four percent and the growth rate of real GDP is two percent, then the government must run.
O a. An overall budget surplus of 6.0 percent of GDP
O b. A primary budget deficit of 0.6 percent of GDP.
O c. A primary budget surplus of 0.6 percent of GDP.
O d. A balanced budget.
O e. An overall budget deficit of 6.0 percent of GDP

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