Which of the Following Will Cause an Increase in the Debt-To-GDP

question 33

Multiple Choice

Which of the following will cause an increase in the debt-to-GDP ratio?

• A)a reduction in the real interest rate
• B)a reduction in the ratio of the primary deficit to GDP
• C)a reduction in the growth rate of output
• D)all of the above

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Definitions:

Deadweight Loss

A loss in economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

Price Ceiling

A government-imposed limit on how high the price of a product can be, intended to protect consumers from high prices.

Monopolist

A single seller in a market who controls the supply of a product or service, and thus, has significant power to set prices.

Deadweight Loss

The drop in economic productivity happening when the optimal free market balance for a good or service isn't met.