Ain’t these the same thing?
In the first red circle, the text says Debt-to-GDP ratio of 70% to 80% is troublesome, then in the second red circle foreign debt level greater than 50% of GDP.
So is the debt in Debt-to-GDP ratio not foreign debt?
OKay in the qbank question.
From the explaination in the solution and the answer, they are apparent the same thing. So what is the cut off point? 50% or 70% or 80%
That’s really confusing
I don’t think this type of political and highly judgemental question will ever appear on the exam, China’s debt to gdp ratio is over 300%, who can prove it’s too high?
I think that there are high chances to appear in the exam. The point here is that the first is a ratio “Debt to GDP“ while the second is a % of GDP. Is quite misleading but I would suggest to not focus on foreign or not but if it is the ratio or the %