The debt-ratio is the ratio of the debt to
A)government spending.
B)saving.
C)taxes.
D)personal disposable income.
E) GDP.

Question

Quizplus · Accepted Answer

The debt-ratio is commonly used to measure a country's debt level, and is calculated by dividing the total government debt by the country's GDP. This ratio is important as it indicates the level of indebtedness of a country relative to its economic output. Therefore, E is the most appropriate choice as it relates to the country's overall economic activity.

The Debt-Ratio Is the Ratio of the Debt to