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Debt Is Measured Relative to GDP Because

Question 6

Multiple Choice

Debt is measured relative to GDP because:


A) the ability of a country to pay off its debt depends on its productive capacity.
B) the ability to produce output depends on the size of the nation's debt.
C) GDP is always used as a reference point in economics.
D) as long as this ratio remains high, the government will have no trouble repaying the debt.

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