A Good Method of Evaluating a Country's Amount of National

question 33

Multiple Choice

A good method of evaluating a country's amount of national debt,according to the authors,is

• A)looking at the raw amount of debt, without any fancy statistics.
• B)looking at the amount of debt controlling for inflation.
• C)dividing the debt as a percentage of the amount of U.S. currency in active circulation.
• D)dividing the debt as a percentage of gross domestic product.
• E)comparing the net debt load today to the net debt load in the same month, but ten years ago.

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Definitions:

Mutually Beneficial Transactions

Economic exchanges that provide benefits to all parties involved, improving their respective situations.

Inefficiency

A situation where resources are not used in the most effective way, leading to wasted potential output.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a price change.

Increase Tax Revenue

Strategies or activities undertaken by a government to enhance the amount of money it collects from taxes.