The ratio of the debt to GDP is a measure of the burden the debt places on the economy.
The debt to GDP ratio measures the burden of deficit financing over time.

Question

Quizplus · Accepted Answer

The statement is true. The debt to GDP ratio is used to evaluate the sustainability of a country's debt and its ability to pay its debts over time. It compares a country's total debt (including both public and private debt) to its gross domestic product (GDP), which is the total value of goods and services produced by a country's economy. A high debt to GDP ratio means a higher burden of debt on the economy, which can lead to potential economic instability if not managed properly.

The Ratio of the Debt to GDP Is a Measure