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by mrwebmaster
2871 days ago
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I agree, they are comparable. A stock can buy a flow for a specific period of time. Or: a flow, accumulated during a period of time, could buy a stock. For example, "if Netherlands would invest all of it GDP generated during one year, it could buy Apple". Debt (stock) to GDP (flow) ratio is very useful, because it allows to see the percentage of the yearly GDP that would be needed to pay 100% of the debt. |
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