Top Posters
Since Sunday
L
3
d
3
y
3
a
3
n
3
d
3
e
3
d
3
c
3
p
3
M
3
a
3
Home Q & A Board Other Fields Homework Help Business
New Topic  
finalgurl90 finalgurl90
wrote...
Go to Answer
Posts: 13
Rep: 0 0
11 years ago
I know people say the bigger a debt is, the more GDP has to grow to service that debt. But, don't you need money to pay off debt? not stuff...so how does an increase in gdp help you service debt??

My theory is the following: if you have an increase in GDP, things are cheaper/you can buy more with your money so you have more money leftover with which you can pay down your debt.
Read 361 times
2 Replies
Replies
wrote...
#1
11 years ago
GDP, total dollar value of all goods and services a nation  produces is a nations income, or wealth creation. The greater the GDP the more wealth. the more tax revenue is produced.

In fact, that is the determining factor in investors decisions to buy government bonds, which is how the country borrows,, it's ability to pay its debt
Answer accepted by topic starter
DataData
wrote...
#2
Posts: 61
Rep: 1 0
11 years ago
Sign in or Sign up in seconds to unlock everything for free
This verified answer contains over 180 words.
1

Related Topics
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1091 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 243
  
 292
  
 385
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 405
Previous poll results: What's your favorite math subject?