Question

If a country’s dept to gdp ratio is 142% the country is borrowing more than it is producing.

A.true
B.false

Answer 1

True because if the country's GDP was less than 100%, it would be losing money instead of making money.

Answer 2

A. True

Explanation:

In the question it is given that the dept to GDP ratio is 142%. This mean that

`(Dept)/(GDP) = (142)/(100)`

this can be interpreted as when GDP is 100, the dept on the nation is 142. Clearly, dept is more than the GDP of the country. This means that the country is borrowing more than it is producing. Hence, the given statement is true