Suppose a country's debt rises by 6% and its GDP rises by 5%. What happens to the debt-GDP ratio?
A) It rises if there is a budget deficit that period.
B) It falls.
C) It rises.
D) There is insufficient information to answer the question.
Ans: C) It rises.
Economics
You might also like to view...
The change in consumption divided by a change in income is called the:
a. consumption function. b. marginal propensity to consume. c. marginal propensity to spend. d. spending function. e. changing propensity to consume.
Economics
In the quantity theory of money:
a. the price level is a function of the supply of money. b. the supply of money is a function of the price level. c. the money supply and the price level are inversely related. d. the money supply is controlled by the government.
Economics