Do we get a useful and meaningful statistic by dividing the national debt by the GDP?
A) Yes -- we can then see how much of the national debt is owed by each individual citizen.
B) No -- the GDP is not a meaningful measure of the well- being of the economy.
C) No -- dividing a stock by a flow can never be sensible.
D) No -- we are essentially "dividing apples by oranges", which is unhelpful.
E) Yes -- we can see the burden of the debt more clearly than using the national debt figure alone.
Correct Answer:
Verified
Q12: Suppose the stock of government debt in
Q13: The Canadian federal government's debt- to- GDP
Q14: The accumulated stock of government debt will
Q15: Consider a closed- economy AD/AS macro model.
Q16: If we want to know whether tax
Q18: Consider the following data about government debt
Q19: Suppose during one fiscal year, government purchases
Q20: The concept of capital budgeting refers to
Q21: The diagram below shows two budget deficit
Q22: Consider a government with a positive stock
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents