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Use the figure to help determine which of the following statements are true. A . The U . S . net federal debt to GDP
Use the figure to help determine which of the following statements are true.
A The US net federal debt to GDP ratio has been, for the most part, decreasing since the end of World War II despite the fact that the US economy was expanding and could afford a larger debt to GDP ratio.
B As a result of the exceptionally large increases in US government military expenditures in the first half of the s that were needed to win World War II the net US public debt to GDP ratio increased substantially, surpassing Since the late s however, US net federal debt to GDP ratio has fluctuated within a relatively small bend around the line.
C The net US federal debt to GDP ratio follows a panern that cannot have a meaningful interpretation.
D Net federal debt in the US changes according to the will of the president and Congress, who behave unpredictably; therefore, it will be impossible to understand what generates annual public deficits, which give rise to the net federal debt.
US Gross Net Federal Debt as a Percentage ofGDP
Net Federal Debt, percentage of GDP
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