If a Government's Debt Is Increasing but Its GDP Is

question 85

Multiple Choice

If a government's debt is increasing but its GDP is increasing faster, the government's:

• A)total debt is falling.
• B)ratio of debt to GDP is falling.
• C)deficit is falling.
• D)ability to pay is falling.

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Definitions:

Seasoned Equity Offering

When a company with publicly traded shares issues additional shares. Also known as a “secondary” or “follow-on” offering.

Primary Market

The primary market is the financial market where new securities are issued and sold for the first time, directly from the issuer.

Secondary Market

A marketplace where investors buy and sell securities or assets that have been previously issued, often through exchanges or over-the-counter markets.

Equity Carve-Outs

The process by which a parent company sells a portion of the equity in a subsidiary to public investors.