The Debt- To- GDP Ratio Is Higher

question 30

Multiple Choice

The debt- to- GDP ratio is higher:

• A) the higher the ratio of the primary surplus to GDP.
• B) the lower the real interest rate.
• C) the higher the real interest rate.
• D) the higher the growth rate of output.
• E) the lower the ratio of the primary deficit to GDP.

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Definitions:

Underapplied Factory Overhead

The amount of actual factory overhead in excess of the factory overhead applied to production during a period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting purposes, which might not align with the calendar year.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on direct labor hours, machine hours, or any other measurable activity.