Which of the Following Will Cause a Decrease in the Debt-

question 31

Multiple Choice

Which of the following will cause a decrease in the debt- to- GDP ratio?

• A) An increase in the real interest rate.
• B) An increase in the ratio of the primary deficit to GDP.
• C) An increase in investment.
• D) An increase in consumption.
• E) An increase in the growth rate of output.

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Definitions:

Fundamental Attribution Error

A cognitive bias where an individual overemphasizes personality-based explanations for behaviors observed in others while underemphasizing the role of external factors.

Eastern Cultures

The societies and cultures of countries situated in the eastern part of the world, particularly in Asia.

Western Cultures

Societies primarily located in the Western hemisphere, characterized by values such as democracy, individualism, and technological innovation.

Situational Attributions

The process of explaining the behavior of others based on external factors or the context of their actions.