Suppose the country of Piedmont borrows money to start a brand-new infrastructure program. GDP is currently $400 billion. The plan will take the public debt from $250 billion to $350 billion in ten years, when GDP is projected to be $425 billion. What is the current debt as a percentage of GDP?

Question

Quizplus · Accepted Answer

The current debt as a percentage of GDP is calculated by dividing the current debt ($250 billion) by the current GDP ($400 billion) and then multiplying by 100 to convert to a percentage: ($250 billion / $400 billion) * 100 = 62.5%.

Suppose the Country of Piedmont Borrows Money to Start a Brand-New