27. A country is likely to be faced with a debt crisis when A) its debt-to-GDP ratio goes above 60 percent B) its debt-to-GDP ratio goes above 100 percent C) the interest rate on its debt reaches double digitsD)its creditors believe that there is little chance that they will be paid backE) its government fails to implement austerity measures in times of high deficits Ans: DDifficulty: Medium28. The greatest burden of an increasing national debt generally is that7
Difficulty: Medium29. If we compare spending as a percentage of GDP by local and state governments and by the federal government from 1960 to 2010, we realize that Difficulty: Easy30. Interest payments on the U.S. national debt as a fraction of all federal government spending Difficulty: Medium31. The primary deficit is equal to A) the total deficit minus interest payments on the government debtB) the total government deficit minus all outstanding government securities held by foreign financial investorsC) all government revenues minus all government outlays including interest payments on the national debtD) the federal government's deficit minus the deficit of state and local governmentsE) mandatory government outlays minus discretionary government outlays Ans: A8
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- Spring '12
- Deficit, national debt, United States public debt