If a government has large consecutive budget deficit but its GDP is growing faster than its debt, the ratio of debt to GDP will increase.

Name: If a government has large consecutive budget deficit but its GDP is growing faster than its debt, the ratio of debt to GDP will increase.
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Question

Quizplus · Accepted Answer

If the GDP is growing faster than the debt despite consecutive budget deficits, this means the economy is expanding which would lead to a decrease in the ratio of debt to GDP. Therefore, the statement is false.

If a Government Has Large Consecutive Budget Deficit but Its