35)If the government balances its primary budget, its debt-to-GDP ratio can still rise if...

a.The debt-to-GDP ratio is greater than 1 (ie, the debt is bigger than GDP).

b.The real interest rate is less than the nominal interest rate due to inflation.

c.The interest rate on the debt is less than the growth rate of nominal GDP.

d.The interest rate on the debt is greater than the growth rate of nominal GDP.

36)Deposits at financial institutions other than banks is part of ____.

a.M1B

b.All of the other options are correct.

c.M2+

d.M2

37)Aggregate demand is given by P = 100 - Y, aggregate supply is given by P = 10 + 2Y and potential GDP is 25. Equilibrium GDP is...

a.70.

b.25.

c.30.

d.45.