Which of the Following Will Cause an Increase in the Debt-To-GDP

question 33

Multiple Choice

Which of the following will cause an increase in the debt-to-GDP ratio?

• A)a reduction in the real interest rate
• B)a reduction in the ratio of the primary deficit to GDP
• C)a reduction in the growth rate of output
• D)all of the above

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Definitions:

Personal Bankruptcies

Legal processes in which individuals declare inability to pay back their debts, leading to potential asset liquidation or restructuring.

Uninsured Workers

Workers who do not have insurance coverage, particularly health insurance, provided by their employer or have not purchased it privately.

GDP Spent

The portion of the Gross Domestic Product that is used for expenditure, including consumption, investment, government spending, and net exports.