The ratio of debt to GDP in the United States

Question

Quizplus · Accepted Answer

The ratio of debt to GDP in the United States fell during the late 1990s due to a combination of strong economic growth and budget surpluses. However, it has been increasing since the early 2000s and is currently at a historically high level. Option A is incorrect because wars typically increase government spending and debt, leading to a higher debt-to-GDP ratio. Option B is incorrect because the debt-to-GDP ratio increased during the decade that began in 2000. Therefore, the correct answer is option C.

The Ratio of Debt to GDP in the United States