Total debt is more important in figuring out the ability of a country to service its debt than are debt to GDP and debt to export ratios.

Question

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Debt to GDP and debt to export ratios are crucial indicators of a country's ability to service its debt because they provide context on the debt relative to the size of the economy and the country's earning capacity from exports, respectively. Total debt alone does not offer insight into the country's economic capacity to manage and repay that debt.

Total Debt Is More Important in Figuring Out the Ability