Researchers believe that the economy grows at least one percentage point less annually when:

Question

Quizplus · Accepted Answer

According to research by economists, when the ratio of public debt to GDP (gross domestic product) exceeds 90 percent for at least five years in a row, the economy grows at least one percentage point less annually. This is due to the fact that high public debt levels can lead to higher interest rates, reduced investment, and reduced confidence in the long-term fiscal sustainability of the government, all of which can negatively affect economic growth.

Researchers Believe That the Economy Grows at Least One Percentage