Final answer:
The claim that federal debt equaled 122% of GDP at the end of World War II is true, as the U.S. borrowed heavily to fund the war effort. Post-war economic growth eventually led to a decline in this ratio, despite high nominal debt levels.
Step-by-step explanation:
The statement that World War II ended with debt equating to 122% of GDP (Gross Domestic Product) is indeed true. The federal debt, which is the sum of all past deficits and surpluses, can vary in relation to the nation's GDP. During World War II, the United States government borrowed extensively to fund the war effort. By the end of the war, the federal debt had risen to a level that exceeded the size of the economy, represented by the GDP metric.
However, this high level of debt as a percentage of GDP didn't indicate a permanent economic downturn. The US economy grew rapidly in the post-war period, partly due to the lack of infrastructural damage that other nations suffered and its ability to provide goods to the rebuilding efforts internationally. As the economy grew, although the nominal amount of debt might have remained high or even increased, the ratio of debt to GDP started to decline.