Suppose a Country's Debt Rises by 6% and Its GDP

question 8

Multiple Choice

Suppose a country's debt rises by 6% and its GDP rises by 8%. 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.

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Definitions:

Levels Of Processing Theory

Levels of processing theory proposes that the depth (shallow to deep) of mental processing affects how well information is remembered, with deeper processing leading to better memory.

Exam

A formal test of a person's knowledge or proficiency in a subject or skill.

Procedural Memory

A type of long-term memory that is responsible for knowing how to perform certain skills and tasks, such as riding a bicycle or typing, without consciously thinking about them.

Forgetting Curves

Graphical representations that show how the ability to retain information decreases over time without rehearsal or practice.