Question: 1. Which factor CAN'T be associated with increased macroeconomic risks? A. increase in short-term foreign currency debt B. large fiscal, trade and current account deficits

1. Which factor CAN'T be associated with increased macroeconomic risks?

A. increase in short-term foreign currency debt

B. large fiscal, trade and current account deficits

C. increase in labor productivity

D. large external financing needs

2. Cyclical public deficits...

A. are temporary and associated with business /economic cycles

B. are temporary and independent of business /economic cycles

C. are permanent and occur when the public budget is balanced

D. are permanent and dependent on the business /economic cycles

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