Solved

Consider Two Economies,A and B

Question 29

Multiple Choice

Consider two economies,A and B.Economy A has a stock of government debt equal to $800 billion and a debt-to-GDP ratio of 10%.Economy B has a stock of government debt equal to $22 billion and a debt-to-GDP ratio of 80%.What is the GDP for each economy?


A) Economy A: GDP = $8 trillion Economy B: GDP = $27.5 billion
B) Economy A: GDP = $80 billion Economy B: GDP = $18.7 billion
C) Economy A: GDP = $80 trillion Economy B: GDP = $275 billion
D) Economy A: GDP = $800 billion Economy B: GDP = $22 billion
E) Economy A: GDP = $8 trillion Economy B: GDP = $2.75 billion

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents