To Evaluate Relative Changes in the Net Public Debt, We

question 70

Multiple Choice

To evaluate relative changes in the net public debt, we must

• A) look at the absolute amount owed by the government.
• B) compare it to the nation's real GDP.
• C) look at the annual percentage change in the public debt.
• D) compare it to the debts of all developed countries.

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Definitions:

Marginal Tax Rate

The marginal tax rate is the rate of tax that applies to the next dollar of taxable income above a pre-determined level.

Call Premium

The additional amount a bond issuer must pay over the bond's face value if it is called before its maturity date.

Closely Held

Refers to a company whose shares are owned by a relatively small number of shareholders, often with the shares not being traded publicly.

Going Public

The process by which a private company offers shares to the public in a new stock issuance, becoming a publicly-traded company.