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if a country's debt-to-GDP ratio is currently 20% and its debt is expected to grow from $15 trillion to $25 trillion in the next 15 years, what will the country's GDP have to be in 15 years to maintain the current debt-to-GDP ratio?

A. $75 trillion
B. $3 trillion
C. $5 trillion
D. $125 trillion

please show me how to do this also :)

Respuesta :

The answer would be: $125 trillion

The country want to keep the debt-to-GDP ratio is at 20% while increasing the debt from $15 trillion to $25 trillion.

If debt-to-GDP is 20% and the debt is $25 trillion then the GDP of the country would be:

debt/GDP= 20%

GDP= debt/ 20%= $25 trillion/20%= $125 trillion

Answer: $125 trillion

Step-by-step explanation: Confirmed

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