If the ratio of debt to GDP increases over time, it means that the government's burden of paying the debt is decreasing and default is less likely.

Question

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If the ratio of debt to GDP increases over time, it means that the government is taking on more debt relative to the size of the economy. This increases the burden of paying the debt and makes default more likely, as the government may struggle to make payments on the growing debt.

If the Ratio of Debt to GDP Increases Over Time