Which of the following statements is incorrect?

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The debt service to GNP ratio is an excellent measure of the debt burden.Numerous major LDC borrowers took on large debts due to their strong international credit standings.Nearly 80% of the total debt owed by all LDCs is attributed to middle-income nations.Sub-Saharan African countries may experience debt burdens comparable to those of middle-income countries.

Explanation

Option A is false because the debt service to GNP ratio is not always a reliable indicator of the debt burden. The other statements are accurate: many large LDC borrowers accumulated debt based on favorable credit ratings; middle-income countries hold the majority of LDC debt; and sub-Saharan Africa's debt burden can be as severe as that of middle-income countries.