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MMLU-Pro / 6893 / Suppose a nation is experiencing an annual budget surplus and uses some of this…

Problem

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question

Suppose a nation is experiencing an annual budget surplus and uses some of this surplus to pay down part of the national debt. One potential side effect of this policy would be

category

economics

options

  1. increase interest rates and throw the economy into a recession.
  2. increase interest rates and depreciate the nation's currency.
  3. decrease interest rates and risk an inflationary period.
  4. decrease interest rates and throw the economy into a recession.

src

ori_mmlu-high_school_macroeconomics

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