A country has public debt of 3300 billion euros and a GDP of 3000 billion euros. What is the debt-to-GDP ratio?
Answer and explanation
Correct answer: A. 110 %
- Step 1: Ratio = debt / GDP x 100. Step 2. 3300 / 3000 x 100 = 110 %. Answer: 110 %. Why not the others: 90.9 %: the ratio was inverted. -10 %: the difference was used instead of the debt. 33 %: the debt was divided by 100.
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