Expanding economy, inflation and households borrowing

Reference no: EM1368382

Is it possible for the gross federal debt to rise in dollar terms but decline as a percentage of GDP? Explain your answer.

I read that it can, and that it is due to an expanding economy, inflation, businesses and households borrowing $ to buy plants/equipment and homes/consumables, however I do not understand how these reasons are related to the gross federal debt rising and the GDP % declining.

Reference no: EM1368382

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Expanding economy, inflation and households borrowing : Is it possible for the gross federal debt to rise in dollar terms but decline as a percentage of GDP? Explain your answer.

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