If a Country Had a Rule That Required the Ratio

question 80

Multiple Choice

If a country had a rule that required the ratio of debt to GDP to be constant, it would necessarily have to run a surplus if

• A)real GDP rose and the inflation rate were positive.
• B)real GDP rose and the inflation rate were negative.
• C)real GDP fell and the inflation rate were positive.
• D)real GDP fell and the inflation rate were negative.

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Definitions:

Manufacturing Company

A manufacturing company is an enterprise that uses raw materials, parts, and components to assemble finished goods on a large scale.

President's Salary

indicates the fixed annual compensation paid to the company's highest-ranking officer.

Period Cost

Costs that are expensed in the period in which they are incurred, typically not directly tied to production activities, such as administrative expenses.

Wages Of Salespersons

Refers to the payments made to sales staff, which may include both fixed salaries and variable commissions based on sales performance.