Increases in the Debt-GDP Ratio Are Primarily Caused by

question 56

Multiple Choice

Increases in the debt-GDP ratio are primarily caused by

• A)a high growth rate of GDP.
• B)a high government deficit relative to GDP.
• C)increases in government borrowing through bonds.
• D)increases in interest rates.

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Definitions:

State Regulatory Agency

A governmental agency at the state level responsible for the oversight, regulation, and enforcement of specific laws within various sectors, including finance, health, and utilities.

Dodd-Frank Act

A comprehensive set of financial regulations passed in 2010 in the United States, aimed at preventing the recurrence of financial crises by increasing transparency and accountability in the financial system.

Financial Companies

Businesses that provide financial services to commercial and retail customers, such as banks, investment companies, insurers, and loan providers.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate.