What does solvency imply in the context of fiscal sustainability? The government debttoGDP ratio is below 60

Fantastic news! We've Found the answer you've been seeking!

Question:

What does solvency imply in the context of fiscal sustainability?

The government debt—to—GDP ratio is below 60 percent of GDP

A government has financing and liquid assets that are sufficient to meet its maturing obligations

The current stock of government debt is fully covered by all expected future primary balances taken at their present discounted value

None of these

Related Book For answer-question

Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

See More Books

Posted Date: Jan 13, 2024 05:21 PM

See More Questions

The following is the Easton Company adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,400 Supplies 17,000...
Prepare a journal entries for this. i . The audit has uncovered unrecorded transactions relating to the payment and receipt of dividends. On 30 June 2021, THE DATA INCUBATOR received dividends of...
Assuming that a project being considered has normal cash flows, with an outflow followed by a series of inflows, which statement would be correct? a) The lower the cost of capital used to calculate...
What did Frederick Taylor, the proponent of scientific management, advocate for to achieve efficiency in manufacturing?
What is the value of the test statistic for a related-samples t test given the following measurements? (a) nD = 16, MD = 4, and sD = 8 (b) MD = 4 and sMD = 8 (c) nD = 64, MD = 8, and sD = 16 (d) MD =...
The National Association of Broadcasters launched its PILOT Innovation Challenge in 2016. The challenge is centered around a specific challenge question aimed at helping the associations primary...
In a transactional data, what is the effect of aggregating similar items into a broader product category? a. Item granularity does not matter as one can simply adjust the minimum support threshold....
Jocelyn contributes land with a basis of $60,000 and fair market value of $90,000 and inventory with a basis of $5,000 and fair market value of $8,000 in exchange for 100% of Zion Corporation stock....
Helena is subjected to a "sneak-and-peek" search in which the search was conducted before her knowledge and before she was presented with a warrant. Helena believes her right to be protected by from...
At the end of March, Weber Productions accounting records reveal a balance for cash equal to $21,861. However, the balance of cash in the bank at the end of February is only $4,576. Weber is...
A mass is attached to the end of a spring and set into oscillation on a horizontal frictionless surface by releasing it from a stretched position. The position of the mass at any time is described by...
Before starting EM7.1, verify that QBO Inventory Tracking is turned on. Go to Gear icon > Account and Settings > Sales > Products and Services > Track quantity and price/rate On > Track inventory...
A resident individual has the following capital gains and losses for the year: Discount capital gain (before discount applied) $10,000 Capital loss $2,000 Carried-forward net capital loss of prior...
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
Ch. 21 - Final Exam > Pg. 4- Course Final Exam GET $25 Colibri Real Estate X A large piece of ground is developed with lights, streets, and sewers. The subdivider wants to get it ready for building....
PREVIS Sulfur ylldes can be generated in a manner similar to that used to produce phosphonium ylldes. For example, treating a sulfonium salt with a strong base gives the sulfur ylide. Ph strong base...
How does adding a high concentration of salt to a medium typically affect bacterial growth?
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
Usually, we think of cheating as a bad thing. But in this chapter, cheating turns out to be a very good thing in some important cases. a. Who gets the benefit when a cartel collapses through...
We explained how a central bank has an important role in maintaining confidence: High confidence keeps velocity growth and the money multiplier from falling. But as weve seen, sometimes one has to be...
If the government keeps real interest rates low (either by raising inflation or by decreeing low interest rates), then this encourages extra borrowing by businesses, which leads to more investment...
What did the temperance reformers see as the cause of wife abuse? How did they propose to solve the problem?
What kinds of qualifications might a statute place on someone who is in a dating relationship? What problems might these qualifications pose?
In brief, what is a civil order of protection?

What does solvency imply in the context of fiscal sustainability? The government debttoGDP ratio is below 60

Question:

Expert Answer:

The detailed answer for the above question is provided below Out of the choices provided only The current stock of government debt is fully covered by ... View the full answer

Modern Principles of Economics

Students also viewed these economics questions