Which of the Following Best Explains Why the Debt-To-GDP Ratio

question 187

Multiple Choice

Which of the following best explains why the debt-to-GDP ratio is important?

• A)If GDP is rising slower than debt, the government is, in some sense, living within its means.
• B)A declining debt-to-GDP ratio raises concerns about a country's financial difficulties.
• C)It is a better measure than the level of debt because it takes into account a country's net exports.
• D)It allows international comparisons of how indebted countries are.

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Definitions:

Units Transferred Out

In process costing, this refers to the finished units that are moved out of a production process to the next process or to finished goods inventory.

Processing Department

A division within a manufacturing facility where a specific stage of production is carried out.

Cost Per Equivalent Unit

A calculation used in process costing to allocate costs among units of production, considering units partially completed at the end of a period.

Equivalent Units

A concept used in process costing that converts partially completed units into a smaller number of fully completed units based on the percentage of completion.