National Debt Decreases in a Given Year When a Country

question 166

Multiple Choice

National debt decreases in a given year when a country has

• A)a budget deficit.
• B)a balanced budget.
• C)a budget supplement.
• D)a budget surplus.
• E)no discretionary fiscal policy.

Analyze the changes in GDP deflator to measure inflation.

Calculate National Income (NI) using different components of income.

Understand the concept of per capita GDP and its calculation.

Analyze the impact of real GDP changes on the economy.

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Definitions:

Market Prices

The prevailing price for goods or services in a competitive marketplace, determined by supply and demand.

Capital Structure

The composition of a firm's financing through a mix of debt, equity, and other financial instruments, affecting its risk and valuation.

Dividend Payout Ratios

The fraction of earnings paid to shareholders in dividends, usually expressed as a percentage.

Pretax Cost of Debt

The rate of interest a company pays on its borrowings before tax adjustments, often used in calculating the cost of capital for a company.