If the Deficit Is 0

question 61

Multiple Choice

If the deficit is 0.02 times GDP,the existing debt-GDP ratio is 0.5,and the growth rate of nominal GDP is 0.03,then the change in the debt-GDP ratio is

• A)+0.05
• B)+0.025.
• C)0)
• D)-0.025.

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Definitions:

Group Depreciation Method

An accounting method that applies a single depreciation rate to a group or pool of assets with similar characteristics and useful lives, instead of depreciating each asset individually.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, essentially spreading its cost over time.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, after depreciation has been subtracted.