If a country's GDP decreases, but its debt increases during that year, then the country's debt to GDP ratio for the year will __

Question

Andrej [43]

3 years ago

9

If a country's GDP decreases, but its debt increases during that year, then the country's debt to GDP ratio for the year will __

_____________ in proportion to the magnitude of the changes.

Business

1 answer:

lord [1] · Answer 1 · 2021-11-26T22:45:10+03:00

Answer:

Increase

Explanation:

Let us assume that GDP was $50 trillion and debt was $5 trillkon in 2018 and GDP fell to $45 trillion in 2019 and debt increased to $15 trillion. The debt to GDP ratio in 2018 is $0.1 trillion and in 2019 it is 0.3. The debt to equity ratio increased.