If a country's GDP increases, but its debt decreases during that year, then the country's debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.

A. increase or decrease
B. decrease because its debt decreased
C. increase because GDP increased
D. decrease

Respuesta :

Answer:

The correct answer is A. increase or decrease

Explanation:

The relationship between debt and GDP is the ratio between a country's public debt and its gross domestic product (GDP). A low debt-to-GDP ratio indicates an economy that produces and sells enough goods and services to pay off its debts without incurring more debt. Geopolitical and economic considerations - including interest rates, war, recessions, and other variables - influence the indebtedness practices of a nation and the choice to incur more debt.

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