The structural de?cit: 0 rises as the economy expands and fails when it contracts.
0 falls as the economy expands and rises when it contracts.
0 changes as actual income changes regardless of potential income. 0 does not change when income changes, but changes only when potential income changes.lfinflation is correctly anticipated, those who buy government bonds will: 0 suffer losses regardless of inflation because interest paid on government bonds is set by Congress.
0 not suffer losses because in?ation does not affect the purchasing power.
0 suffer losses because theywill be compensated by lower interest payments. 0 not suffer losses because they will be compensated by higher interest payments.If the federal government has a budget surpius in a given year. the nationai debt wiil: 0 decrease.
0 remain constant. 0 increase only if output is below potential output. 0 increase.if an economy operates below potential income, the actual de?cit is: 0 smaller than the structural de?cit.
O largerthan the structural de?cit
O the same as the structural deficit. O comparable to the structural de?cit.Debt service payments by the government: 0 are used to purchase goods and services;
0 are a payment for past expenditures.
0 do not burden the generations that must make them. 0 have fallen continuously since World War II.When the U.S. debt—{o—GDP ratio has fallen. it has generally been because: 0 the budget de?cit fell.
0 the budget de?cit rose. 0 income fell. 0 income rose.If actual income is $300 biiiion. potential income is $350 billion, the total deficit is $20 billion, and tax revenue increases with income, then the structural de?cit can be any
of the following except 0 $10 billion.
0 $20 billion.A constant debt—to—GDP ratio in a growing eco ncumyr is consistent with a: O con?nual surplus.
O con?nual de?cit.
O balanced budget. 0 falling level of total debtPaying interest on internai government debt invotves a: net reduction in domestic income.
redistribution of income among citizens of the counin.
net increase in domestic income. redistribution of income to citizens of other countries. 0000
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