The average tax rate required to service the public debt is roughly measured by:
A)the absolute size of the debt.
B)the debt as a fraction of the GDP.
C)interest on the debt as a proportion of the GDP.
D)none of the above.

Question

Quizplus · Accepted Answer

The average tax rate required to service the public debt is best measured by the interest on the debt as a proportion of the GDP, as it reflects the actual cost of servicing the debt relative to the size of the economy.

The Average Tax Rate Required to Service the Public Debt