Question

If a country’s debt to GDP ratio is currently 20% and its debt is expected to grow from 15 trillion to 25 trillion in the next 15 years, what will the country’s GDP have to be in 15 years to maintain the current debt to GDP ratio

Answer 1

The answer would be: $125 trillion

The country want to keep the debt-to-GDP ratio is at 20% while increasing the debt from $15 trillion to $25 trillion.

If debt-to-GDP is 20% and the debt is $25 trillion then the GDP of the country would be:

debt/GDP= 20%

GDP= debt/ 20%= $25 trillion/20%= $125 trillion

Explanation: