If the deficit is 0.08 times GDP, the existing debt—GDP ratio is 0.8, and the growth rate of nominal GDP is 0.05, then the change in the debt—GDP ratio is

The price elasticity of demand for a good that is a necessity is likely to be:

A) unit elastic. B) perfectly elastic. C) elastic, but not perfectly elastic. D) inelastic.

When a country's export spending exceeds import spending, the country is experiencing a:

A) trade deficit. B) trade surplus. C) budget deficit. D) none of the above.