Question

In 2018 payments on the federal debt amounted to what percentage of GDP?

-38%
-1.8%
-28%
-18%

Answer 1

In 2018, federal debt interest payments were not as high as the percentages offered in the question options; they have historically varied, remaining low by historical comparison in recent years.

Step-by-step explanation:

In 2018, the interest payments on the federal debt as a percentage of Gross Domestic Product (GDP) were neither as high as some of the percentages suggested in the multiple-choice question. Interest payments on federal debt have varied over time. In the 1960s and 1970s, they were typically 1-2% of GDP.

In the 1980s, these payments climbed above 3% of GDP and remained at that level until the late 1990s. Due to surpluses run from 1998 to 2001 and low interest rates, by 2012 the interest payments on the federal debt had fallen to 1.4% of GDP, remaining low by historical comparison.