Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that during a crisis, the actual primary deficit has continuously remained less than the cyclically adjusted primary deficit. Other things being equal, for debt

image text in transcribed
image text in transcribed
Suppose that during a crisis, the actual primary deficit has continuously remained less than the cyclically adjusted primary deficit. Other things being equal, for debt to remain sustainable, which of the following is true? O a. The economy will have to run a larger budget surplus; O b. If the cyclical deficit is very large, the actual deficit will have to be even lower than it is; O c. None of the other answers; O d. The economy will have to run a larger cyclical surplus after the crisis; O e. The cyclical deficit will have to decrease

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles A Business Perspective Financial Accounting Chapter 1-8

Authors: James Edwards, Roger Hermanson, Bill Buxton

1st Edition

1461088186, 978-1461088189

More Books

Students also viewed these Economics questions

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago