Public or "Sovereign Debt" is: Debt owed by the government sector to foreign investors Always smaller than external debt Always larger than external debt Debt owed by the government to all investors. Question 8 A country has real interest rates of 2% and real GDP growth of 6\%. It's stock of debt is 50% of GDP and it took on an additional 5% of GDP in debt last period. The resulting change in the debt to GDP ratio is: An increase of 3.0% A decline of 4.0%. An increase of 5.0% A decline of 3.0%