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The DEBTLAND's Debt-GDP Ratio in 2004 Was 0

Question 60

Multiple Choice

The DEBTLAND's debt-GDP ratio in 2004 was 0.7,but it went down by 20 percent in 2005.If the interest rate paid on debt is 4 percent and the economy grows by 4 percent in 2005,the DEBTLAND's primary deficit to GDP ratio must


A) have increased by 20 percent.
B) have decreased by 20 percent.
C) have remained unchanged.
D) have decreased by 4 percent.

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