Suppose the change in the government's debt- to- GDP ratio in a given year is 0.026. This figure tells us that the government's debt- to- GDP ratio has

Question

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The change in the government's debt-to-GDP ratio of 0.026 indicates that the ratio has increased by 2.6 percentage points, as the figure represents a change in percentage points, not percentage change. Option C states this correctly. Option A suggests a decrease rather than an increase. Option B suggests a small increase of 0.026%, which is incorrect. Option D is incorrect, as the correct unit of measure should be percentage points, not percentage change. Finally, option E also suggests a decrease rather than an increase.

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