The Debt Ratio Will Increase by More in Any Given

question 55

Multiple Choice

The debt ratio will increase by more in any given year when:

• A) the initial debt ratio is greater.
• B) the growth rate of GDP is higher.
• C) the real interest rate is lower.
• D) the primary deficit ratio is lower.
• E) the initial debt ratio is lower.

---

Definitions:

Average Variable Cost

The cost per unit of variable inputs divided by the total output, showing the variable cost component of producing each unit.

Average Fixed Cost

The fixed costs (costs that do not change with the level of output) of production divided by the quantity of output produced, decreasing as production increases.

Total Cost

The full price of producing goods, encompassing both stable and changeable expenses.

Eyeglasses

Corrective or protective devices worn on the eyes, consisting of lenses mounted in a frame, to improve vision or protect the eyes from damage or light.