Economics · Public Finance and Debt Sustainability
Consider the following statements regarding public debt sustainability: 1. Public debt is sustainable if the growth rate of GDP exceeds the interest rate on debt. 2. A primary deficit always leads to an increase in debt-to-GDP ratio. 3. Debt sustainability depends on fiscal discipline and growth performance. How many of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1None
- 2All three
- 3Only two✓
- 4Only one
Correct answer
Only two
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