Which of the Following Best Explains Why the Debt-To-GDP Ratio

Multiple Choice

Which of the following best explains why the debt-to-GDP ratio important?

A) If GDP is rising slower than debt, the government is, in some sense, living within its means.
B) A declining debt-to-GDP ratio raises concerns about a country's financial difficulties.
C) It is a better measure than the level of debt because it takes into account a country's net exports.
D) It allows international comparisons of how indebted countries are.