Question

From 1995 (inclusive) to 2000, what was the UK government spending as a percentage of GDP?

1) 10%
2) 15%
3) 20%
4) 25%

Answer 1

The UK government spending as a percentage of GDP was likely below 20% from 1995 to 2000, considering the steady decline in defense spending and interest payments.

Step-by-step explanation:

From 1995 to 2000, the UK government spending as a percentage of GDP declined steadily. Although the question specifies the UK, given data is primarily about the US; however, trends may be somewhat similar. In the early 1990s, defense spending constituted a larger portion of the GDP with it being 5.2% in 1990. By 2000, defense spending had reduced to 3.0% of GDP, contributing significantly to the decline in overall government spending as a percentage of GDP. Additionally, federal government spending on interest payments also fell by about 1.0% of GDP during this decade. As a result of these changes and considering the data provided, it is clear none of the options (10%, 15%, 20%, 25%) exactly match the data, but the most likely range for government spending as a percentage of GDP would have been below 20%, considering the decline from earlier levels.