If the government runs a deficit this year that is

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13.) If the government runs a deficit this year that is exactly equal to the size of its deficit last year, a.) government debt at the end of this year will be higher than government debt at the end of last year b.) government debt at the end of this year will be exactly the same as government debt at the end of last year c.) government debt at the end of this year will be lower than government debt at the end of last year d.) it cannot be determined from the information given
14.) If the government runs a primary surplus this year that is exactly equal to its net interest expense this year
15.) Suppose you know that the average interest rate on outstanding government debt is 2%. If the government runs a deficit this year that is 2% bigger than its deficit last year then
16.) According to the federal budget projections from the Congressional Budget Office, which of the following is projected to shrink as a percent of GDP over the next 20 years?
17.) Under which of the following would you expect total world GDP to be largest? a.) autarky b.) free trade in goods but not open migration between countries c.) open migration between countries but not free trade in goods d.) both free trade in goods and open migration between countries
18.) If a country wants to hold its exchange rate fixed,
page 4 of 8 PART II: SHORT ANSWER (38 points total)

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