Two part question Select either Country A or B from dropdown Consider the following data for Country A and Country B Country A Country B 1 2 8 90 100 Primary Budget Surplus GDP Sovereign Debt GDP Nominal GDP Growth Rate Nominal Interest Rate on Debt 3 7 4 9 In this scenario (Click to select) is likely to see fiscal stabilization How will monetary policy likely change in the country that will not see stabilization The central bank will decrease interest rates No new government debt will be issued The central bank will keep interest rates stable, but increase the money supply Congress will decrease spending Consider the following data for Country A and Country B Country A Country B 1 2 8 90 100 Primary Budget Surplus GDP Sovereign Debt GDP Nominal GDP Growth Rate Nominal Interest Rate on Debt 3 7 4 9 In this scenario (Click to select) is likely to see fiscal stabilization How will monetary policy likely change in the country that will not see stabilization The central bank will decrease interest rates No new government debt will be issued The central bank will keep interest rates stable, but increase the money supply Congress will decrease spending

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Two part question  Select either Country A or B from dropdown Consider the following data for Country A and Country B  Country A Country B 1  2 8  90  100  Primary Budget Surplus   GDP Sovereign Debt   GDP Nominal GDP Growth Rate Nominal Interest Rate on Debt 3  7  4  9  In this scenario (Click to select) is likely to see fiscal stabilization  How will monetary policy likely change in the country that will not see stabilization  The central bank will decrease interest rates  No new government debt will be issued  The central bank will keep interest rates stable, but increase the money supply  Congress will decrease spending  Consider the following data for Country A and Country B  Country A Country B 1  2 8  90  100  Primary Budget Surplus   GDP Sovereign Debt   GDP Nominal GDP Growth Rate Nominal Interest Rate on Debt 3  7  4  9  In this scenario (Click to select) is likely to see fiscal stabilization  How will monetary policy likely change in the country that will not see stabilization  The central bank will decrease interest rates  No new government debt will be issued  The central bank will keep interest rates stable, but increase the money supply  Congress will decrease spending

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Two part question: Select either Country A or B from dropdown Consider the following data for Country A and Country B. Country A Country B

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