The ratio of debt to GDP is a way to assess the ability of a government to pay its debts because it is an indicator of the taxes that the government can collect to pay the debt.

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The ratio of debt to GDP is a measure of the size of a country's debt in relation to its economic output. It helps assess the sustainability of a country's debt and its ability to pay it off. The higher the ratio, the more difficult it may be for a government to service its debt, as a larger portion of the country's resources may need to be devoted to paying interest and principal. This ratio does not necessarily reflect the amount of taxes a government can collect, but it may impact a country's credit rating and borrowing costs, which can affect its ability to repay its debts.

The Ratio of Debt to GDP Is a Way to Assess