A measure of the burden of continual deficit financing over time is the ratio of
A)The deficit to the GDP.
B)The debt to the GDP.
C)The deficit to the debt.
D)Tax revenues to the debt.

Question

Quizplus · Accepted Answer

The debt to GDP ratio reflects the overall level of debt relative to the size of the economy and can indicate the sustainability of the country's fiscal position. A high debt to GDP ratio indicates that a country is taking on a lot of debt, which can make it difficult to repay in the future and potentially lead to a fiscal crisis. The deficit to GDP ratio can vary year to year and may not provide as clear of a picture of the long-term fiscal health of a country. The deficit to debt ratio doesn't give an indication of the overall level of debt or the size of the economy. Tax revenues to the debt ratio doesn't alone provide enough information to determine the economic burden of continuous deficit financing.

A Measure of the Burden of Continual Deficit Financing Over