The national debt of a country represents the cumulative total of all past government borrowing that remains outstanding. Which of the following fiscal developments is guaranteed to reduce the nominal value of the national debt in a given financial year?
A primary budget surplus that is greater than the government's interest payments on existing debt.
A fall in the government's budget deficit as a percentage of Gross Domestic Product (GDP).
An increase in tax revenues that leads to a balanced budget.
A rate of economic growth that exceeds the average interest rate paid on government bonds.
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.