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Karen
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Karen asked in Education & ReferenceHomework Help · 1 decade ago

Debt is measured relative to GDP because: ?

a. the ability to pay off a country's debt depends on its productive capacity.

b. the ability to produce output depends on the size of the nation's debt.

c. GDP is always used as a reference point in economics.

d. as long as this ratio remains high, the government will have no trouble repaying the debt.

2 Answers

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  • Charlie T
    1 decade ago
    Favorite Answer

    I think A is the best answer. B is a false statement. C would be the wrong answer no matter what question was asked. D is a subjective statement.

  • Wiseguy
    1 decade ago

    A

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