Question

If a country’s debt gdp ratio is 161% the country is producing more than it is borrowing true or false

Answer 1

The given statement is false.

Explanation:

If a country’s debt GDP ratio is 161% the country is producing more than it is borrowing - This is false.

The debt of a country rises, when it is unable to make payments for the borrowed amounts. This does not ensure anything with more production. Basically when you are defaulting on payments on a very large scale, then it makes debt gdp ratio that much high.

Answer 2

False

Explanation:

Having a higher debt gdp ratios does not necessarily mean that the country is producing more the it is borrowing. It all comes down to whether or not the country could make its payments.

There are some countries that have almost exactly the same debt gdp ratios, but may have a different come out in the end. There is no ideal debt gdp ratio yet defined as of today, but economists use debt gdp ratios to find out if a country might default.