Question

Why is the government-debt-to-GDP percentage a valuable measurement?

A. It gives information about how much each citizen would have to pay if individual citizens were to pay off the government debt.
B. It gives information about how much the government owes compared to how much the nation produces in goods and services.
C. It gives the president information about how much money to use in the nation's defense.
D. It gives information about how many foreign nations have control over the GDP.

I have literally looked everywhere in my book and can't find this answer. Please help!!

Answer 1

B) It gives information about how much the government owes compared to how much the nation produces in goods and services.

Answer 2

The correct answer is B.

The Gross Domestic Product (GDP) is the total amount of goods and services, measured in monetary terms, produced in a country during a specific period of time, generally a year.

The ratio goverment-debt-to GDP measures the total amount of debt per each euro of output that had been generated during the same period of time.