Which of the following statements is true about the U.S. national debt?
I. Relative to the level of economic activity, the debt is well below the levels reached during
World War II.
II. The ratio of debt to GDP rose from 1981 to 1996 and fell in the last years of the twentieth
Century; it began rising again in 2002.
III. Judged by international standards, the U.S. national debt relative to its GDP is above average among developed nations.

Question

Quizplus · Accepted Answer

All three statements about the U.S. national debt are true. I. The U.S. national debt relative to GDP was indeed higher during World War II than it is today. II. The debt-to-GDP ratio did increase from 1981 to 1996, decrease towards the end of the 20th century, and began rising again in the early 2000s. III. Compared to other developed nations, the U.S. debt-to-GDP ratio is above average, indicating a higher level of debt relative to its economic size.

Which of the Following Statements Is True About the U