A Higher Deficit in the Current Year Will Lead to Increased

question 30

Multiple Choice

A higher deficit in the current year will lead to increased debt in the future only if

• A)the deficit is greater than the previous year's deficit.
• B)the deficit-to-GDP ratio is greater than the debt-to-GDP ratio.
• C)it causes a drop in private saving.
• D)it causes an increase in private saving.
• E) none of the above

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Definitions:

Judicial Determination

A decision made by a court or a judge regarding the outcome of a legal matter.

Capital Contribution

The act of providing assets or funds to a partnership or company by its owners or partners to support its operations or start-up.

Seize Partnership Property

The act of taking control over property or assets owned by a partnership, often through legal or financial processes.

Personal Debt

Financial obligations incurred by an individual, as opposed to those owed by companies or governments.