To compare the net public debt of various countries, the debt has to be compared to
A) the country's trade deficit.
B) the country's current budget deficit or surplus.
C) the country's real GDP.
D) the country's national defense expenditure.

Question

Quizplus · Accepted Answer

To compare the net public debt of various countries, the debt has to be compared to the country's real GDP, which is the total value of goods and services produced by a country in a year. This provides a measure of the country's ability to pay off its debt. Comparing it with the country's trade deficit, current budget deficit or surplus, or national defense expenditure alone does not give a comprehensive picture of the country's debt situation.

To Compare the Net Public Debt of Various Countries, the Debt