Question 7 4 pts The Happy Gnome Company AG has a profit of $100 million this year and they use all of it to buy back some of their outstanding bonds. Which of the following is true? O They have a surplus and they have reduced their debt. They have increased their deficit and reduced their debt. O They have reduced their deficit and increased their debt. O They have reduced their deficit and reduced their debt. O They have increased their deficit and increased their debt