Consider the Following National Data: Tax Revenues as a Percentage

question 199

Multiple Choice

Consider the following national data: tax revenues as a percentage of GDP: 25 percent; government spending as a percentage of GDP: 31 percent; unemployment rate: 9 percent; inflation rate: 6
Percent. What is the misery index for this nation?

• A) 15 percent
• B) 31 percent
• C) 34 percent
• D) 53 percent

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Definitions:

Gross Income

The total income earned before any deductions or taxes are subtracted.

Back-end Ratio

A debt-to-income ratio that calculates the percentage of a person's gross income going toward paying all debt obligations, including mortgage and auto loans.

Expenses

Costs incurred or money spent on goods and services.

Escrow Account

An escrow account is a financial arrangement where funds or assets are held by a third party on behalf of two other parties in the process of completing a transaction.