One way to measure national debt over time is relative to:
A)the cash flow of the banking system.
B)the economy's production and income.
C)credit sales of consumer durables over a year.
D)national home sales in large cities.
E)the economy's savings.

Question

Quizplus · Accepted Answer

Measuring national debt relative to the economy's production and income provides a context to understand how much debt is owed in relation to the country's overall ability to pay it back. This can be done by calculating the debt-to-GDP ratio, which is the ratio of the national debt to the country's gross domestic product. This allows for a comparison of debt levels over time and between countries.

One Way to Measure National Debt Over Time Is Relative