What are two ways the debt-to-GDP can decrease?

Answer 1

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)

Answer 2

GDP Increases & Debt decreases.