A measure of the burden of continual deficit financing over time is the ratio of
A)The deficit to the GDP.
B)The debt to the GDP.
C)The deficit to the debt.
D)Tax revenues to the debt.

Question

Quizplus · Accepted Answer

The debt to GDP ratio is a measure that compares a country's total debt to its gross domestic product. It is a good measure of the overall economic health of a country and reflects the financial burden of a country's debt over time. A high debt to GDP ratio means that a country has a higher level of debt compared to its economic output, which can lead to concern about the country's ability to pay back the debt and can also hamper economic growth. Therefore, B is the best choice as it gives a more comprehensive view of the long-term impact of deficit financing.

A Measure of the Burden of Continual Deficit Financing Over