Question

Which of the following statements is true? - The size of the national debt is not...

Which of the following statements is true?

- The size of the national debt is not as important as whether that money is spent wisely

- All of the answers are correct

- A good measure of the debt burden is the debt-to-GDP ratio

- None of the answers are correct

- The size of the national debt is not as important as the ability of the government to repay it

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Answer #1

Option b . All of the answers are correct. If money is spent wisely the welfare of public improves and GDP improves which helps in repaying debt. Debt to GDP ratio is good measure of Burden. Government repaying capacity is important for repaying debt.

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