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Cassie Wilkerson:
The two primary reasons debt ratio increases:
Inflation - which includes increased interest rates
- Inflation reduces demand upon markets and leads to borrow buying
Decreased market demand on GDP produced - via outside economic competition
- Market depreciation leads to increased holdings in unsold capital with resources incurred to produce demanding payment or borrowing to secure produced goods till sold in most cases at a reduced rate then produced
There are other actions other than listed that may increase - debt on GDP
Market over valuation and corrections.
Policy adjustments on raw resources
Economic sanctions against trade
Economic policies that inhibit domestic trade (import & export ratios)
Wiki User
∙ 11y ago
Wiki User
∙ 9y agoGDP Increases & Debt decreases.
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