A Measure of the Burden of Continual Deficit Financing Over

question 145

Multiple Choice

A measure of the burden of continual deficit financing over time is the ratio of

• A)The deficit to the GDP.
• B)The debt to the GDP.
• C)The deficit to the debt.
• D)Tax revenues to the debt.

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Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and ensuring fair and efficient markets.

Waiting Period

In securities registration, the period between the time an issuer files a registration statement and prospectus with the SEC requesting to offer a security and the time the offer is approved by the SEC, which is a minimum of 20 days.

Registration Statement

A legal document filed with regulatory authorities providing essential details about an investment offering to the public, ensuring transparency and compliance with securities laws.

Prospectus

A legal document issued by companies that are offering securities for sale, providing potential investors with details about the investment.