Question
Q4: If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the
Q4: If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the government do to maintain a constant debt-to-GDP ratio?
a)Run a surplus of $300 million
b)Balance the budget
c)Run a deficit of $300 million
d)Run a deficit of $600 million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Capital In The Twenty-First Century
Authors: Thomas Piketty, Arthur Goldhammer
1st Edition
067443000X, 9780674430006
