Question
When a government runs a surplus then they can say they have a balanced budget they can reduce the national debt they must issue more
When a government runs a surplus then
they can say they have a balanced budget
they can reduce the national debt
they must issue more bonds to the public
they must print more money
Running government budget deficit today indicates
taxes likely will decrease in the future
government spending likely will increase in the future
investment likely will decrease in the future
nothing will happen in the future
A rising debt to GDP ratio could be since
economic activity in the economy is decreasing
the government is increasing taxes
the government is running budget surpluses
the Central bank is borrowing money
All else the same an increase in nominal GDP will
not affect the debt to GDP ratio
decrease the debt to GDP ratio
increase the debt to GDP ratio
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