Suppose real GDP is constant. If the government's fiscal policy objective is to reduce the outstanding public debt, the government must: Oa. Have a structural primary budget surplus that is larger than its interest payments on the public debt O b. None of the answers is correct Have a structural budget surplus equal to the outstanding public debt O d. Sell new bonds in the open market

Suppose real GDP is constant. If the government's fiscal policy objective is to reduce the outstanding public debt, the government must: Oa. Have a structural primary budget surplus that is larger than its interest payments on the public debt O b. None of the answers is correct Have a structural budget surplus equal to the outstanding public debt O d. Sell new bonds in the open market

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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