Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

In what circumstances will the future burden of the national debt on a country rise the most?

  • Aincrease in the budget deficit +2% of GDP / change in GDP +4% / price of government bonds decreasing
  • Bincrease in the budget deficit +2% of GDP / change in GDP +4% / price of government bonds increasing
  • Cincrease in the budget deficit +4% of GDP / change in GDP +2% / price of government bonds decreasing
  • Dincrease in the budget deficit +4% of GDP / change in GDP +2% / price of government bonds increasing

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