Do We Get a Useful and Meaningful Statistic by Dividing

question 88

Multiple Choice

Do we get a useful and meaningful statistic by dividing the national debt by the GDP?

• A)No - we are essentially "dividing apples by oranges," which is unhelpful.
• B)No - the GDP is not a meaningful measure of the well-being of the economy.
• C)Yes - we can then see how much of the national debt is owed by each individual citizen.
• D)Yes - we can see the burden of the debt in relation to the size of the economy.
• E)No - dividing a stock by a flow can never be sensible.

---

Definitions:

Bull Money Spread

An options strategy involving the purchase of a call option with a lower strike price and the sale of another call option with a higher strike price, aiming to profit from a moderate increase in the price of the underlying asset.

Calls

Financial derivative options that give buyers the right, but not the obligation, to buy a security at a specified price within a specified duration.

Option Position

An option position refers to an investment strategy involving the buying or selling of options, which are derivatives based on the value of underlying securities like stocks.

Call Contract

An agreement giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.