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Because more is spent than there actually is.

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13y ago

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Related Questions

What are two ways the debt-to-GDP ratio can decrease?

The debt can be repaid, or the GDP can grow faster than the debt.


How does increasing the GDP help a country?

It helps as it stops our country from being in debt so the higher the Gross Domestic Product (GDP) the lower chance of this country being in debt :)


How is debt-to-GDP ratio calculated?

(primary balance/GDP)*100 .GDP decreases. Debt increases.


What are two ways the debt to GDP ratio can increase?

GDP Decreases and Debt Increases


What are two ways the debt-to-GDP ratio increase?

debt increases and GDP decreases.


Should the real GDP rate of growth be higher than the nominal GDP growth?

no


Is the total public debt more relevant to an economy than the public debt as percentage of GDP?

The public debt as a percentage of real GDP in the United States is neither particularly high or low relative to such debt percentages in other advanced industrial nations.


How does the debt-to-GDP ratio vary among different countries?

The debt-to-GDP ratio varies among different countries based on their economic conditions and government policies. Some countries have higher ratios due to large debts and lower GDP, while others have lower ratios due to smaller debts and higher GDP. This ratio is used to measure a country's ability to repay its debts relative to its economic output.


US GDP is higher than Mexico?

Yes, by a lot:Mexico GDP: USD$1.56 trillionUS GDP: USD$14.26 trillion (more than 9 times the size of Mexico's GDP).


If a country's debt-to-GDP ratio is 119 the country is producing more than it is borrowing.?

false


is a county's debt-to-GDP ratio is 142%, the country is borrowing more than it is producing?

true


How can one determine the debt to GDP ratio?

To determine the debt to GDP ratio, divide a country's total debt by its gross domestic product (GDP) and multiply by 100 to get the percentage. This ratio helps assess a country's ability to repay its debt relative to its economic output.