Suppose the change in the government's debt-to-GDP ratio in a given year is -0.018.This figure tells us that the government's debt-to-GDP ratio has

Question

Quizplus · Accepted Answer

The figure given (-0.018) represents a percentage change in the debt-to-GDP ratio, not a percentage itself. Therefore, to find the actual change, we need to multiply it by the starting debt-to-GDP ratio. If we assume the starting ratio was 100%, then -0.018 multiplied by 100 results in a change of -1.8 percentage points. This means the ratio has fallen by 1.8 percentage points, making choice D the correct answer.

Suppose the Change in the Government's Debt-To-GDP Ratio in a Given