To understand the quantitative significance of the public debt relative to the economy, it should be:
A)divided by the social security trust fund.
B)multiplied by the size of the population.
C)measured as a percentage of GDP.
D)compared to the value of imports and exports.

Question

Quizplus · Accepted Answer

Measuring the public debt as a percentage of GDP allows for a comparison of the amount of debt relative to the size of the economy. This helps to put the debt into perspective and understand its impact on the economy as a whole. Dividing by the social security trust fund, multiplying by the size of the population, and comparing to the value of imports and exports do not provide as meaningful of a measure.

To Understand the Quantitative Significance of the Public Debt Relative