If a government's debt is increasing but its GDP is increasing faster, the government's:
A)total debt is falling.
B)ratio of debt to GDP is falling.
C)deficit is falling.
D)ability to pay is falling.

Question

Quizplus · Accepted Answer

When a government's debt is increasing but its GDP is increasing faster, the ratio of debt to GDP is falling. This means that the government's economy is growing faster than its debt, making it easier for the government to manage and pay off its debt in the future.

If a Government's Debt Is Increasing but Its GDP Is