Holding Other Factors Constant, the Ratio of Government Debt to GDP

question 53

Multiple Choice

Holding other factors constant, the ratio of government debt to GDP can decrease as a result of any of the following changes except:

• A) decreases in government spending.
• B) increases in GDP.
• C) decreases in tax revenues.
• D) decreases in transfer payments.

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Market Price

The present cost at which a product or service is available for purchase or sale in the market.

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A financial derivative contract giving the holder the right but not the obligation to sell a specified amount of an underlying asset at a set price before the contract expiration.

Market Price

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