Consider Two Economies,A and B

Multiple Choice

Consider two economies,A and B.Economy A has a stock of government debt equal to $800 billion and a debt-to-GDP ratio of 10%.Economy B has a stock of government debt equal to $22 billion and a debt-to-GDP ratio of 80%.What is the GDP for each economy?

A) Economy A: GDP = $8 trillion Economy B: GDP = $27.5 billion
B) Economy A: GDP = $80 billion Economy B: GDP = $18.7 billion
C) Economy A: GDP = $80 trillion Economy B: GDP = $275 billion
D) Economy A: GDP = $800 billion Economy B: GDP = $22 billion
E) Economy A: GDP = $8 trillion Economy B: GDP = $2.75 billion