The debt-to-GDP ratio is higher,
A)the lower the real interest rate.
B)the lower is the ratio of the primary deficit to GDP.
C)the higher is the growth rate of output.
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

None of the given options accurately explain the relationship between debt-to-GDP ratio and the factors mentioned. The debt-to-GDP ratio is calculated by dividing the debt of a country by its GDP, so it is not directly affected by the real interest rate, ratio of primary deficit to GDP, or growth rate of output. However, these factors do impact a country's ability to manage its debt and make repayments.

The Debt-To-GDP Ratio Is Higher