To determine whether the statement is true or false, we need to understand what the debt-to-GDP ratio represents. The debt-to-GDP ratio is a measure of a country's national debt compared to its gross domestic product (GDP).
- Debt: The total amount of money that the country owes.
- GDP: The total market value of all goods and services produced within the country in a given period, usually annually.
A debt-to-GDP ratio of 92% means that the country's total debt is 92% of its GDP. Now, let's analyze the statement given:
"The country is producing more than it is borrowing."
If the debt-to-GDP ratio is 92%, this implies:
- For every 100 units of GDP produced, the country has borrowed 92 units of debt.
Since 92% < 100%, the country’s production (GDP) exceeds its borrowing. In other words, the production is greater than the debt obligations.
Thus, the statement is true.
Therefore, the correct answer is:
A. True
