Which of the following is likely to increase the net federal debt as a share of GDP?

Question

Quizplus · Accepted Answer

Both a federal budget deficit and a recession are likely to increase the net federal debt as a share of GDP. A budget deficit means the government is spending more than it earns, leading to borrowing and increased debt. A recession reduces economic activity, which can lower tax revenues and increase government spending on social services, further increasing the deficit and debt relative to GDP.

Which of the Following Is Likely to Increase the Net