Suppose a country's debt rises by 6% and its GDP rises by 8%. What happens to the debt-GDP ratio?
A) It rises if there is a budget deficit that period.
B) It falls.
C) It rises.
D) There is insufficient information to answer the question.
Ans: B) It falls.
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If the geography hypothesis holds, then:
A) poorer countries are permanently disadvantaged. B) living standards in poorer countries can be substantially improved. C) poorer countries are likely to catch up with richer countries very fast. D) cultural beliefs can be considered to be an important source of economic prosperity.
Oligopoly is a market structure in which
A) many firms each produce a slightly differentiated product. B) one firm produces a unique product. C) a small number of firms compete. D) many firms produce an identical product. E) the number of firms is so small that they do not compete with each other.
Which of the following is correct when a price is set below a market's equilibrium price?
a. quantity demanded exceeds quantity supplied at the set price b. quantity demanded is less than quantity supplied at the set price c. quantity demanded is equal to quantity supplied at the set price d. at the set price there is a surplus e. the market price is less than the ceiling price
Total utility
a. can never be negative b. is maximized when marginal utility is maximized c. always continues to increase as more of the good is consumed d. is maximized when marginal utility is zero e. is minimized when marginal utility is zero