Question

which of the following statements is false? a. government debt-to-gdp ratio is higher in developed countries than in developing countries b. the debt-to-gdp ratio in the u.s. decreased between 1945 and 1980 c. the debt-to-gdp ratio in the u.s. decreased between 1980 and 2020 d. both federal and combined state and local governments run primary budget deficits

Answer 1

The false statement is option C, as the debt-to-GDP ratio in the U.S. actually increased between 1980 and 2020.

Step-by-step explanation:

The false statement is option C, which says that the debt-to-GDP ratio in the U.S. decreased between 1980 and 2020. In reality, the debt-to-GDP ratio in the U.S. increased during this period.

According to the information provided, the government ran large deficits in the 1980s and early 1990s, causing the debt-to-GDP ratio to rise sharply. Budget surpluses arrived from 1998 to 2001, leading to a decline in the debt-to-GDP ratio. However, budget deficits starting in 2002 and the recession in 2008-2009 caused the ratio to increase again.

Therefore, the correct option is C, as the debt-to-GDP ratio in the U.S. actually increased between 1980 and 2020.