Suppose in the beginning of 2006, a country has a national debt of $8,000 billion.Its GDP in
2006 is $32,000 billion and its budget deficit of $1,600 billion.Compute its debt-GDP ratio at the end of the year.

Question

Quizplus · Accepted Answer

The debt-GDP ratio can be calculated by dividing the national debt by the GDP and multiplying by 100.

Debt-GDP ratio = (National Debt / GDP) x 100
Debt-GDP ratio = (8000 / 32000) x 100
Debt-GDP ratio = 25%

Therefore, the correct option is D) 28.6%.

Suppose in the Beginning of 2006, a Country Has a National