Use the figure to help determine which of the following statements are true.
A. Net federal debt in the U.S. changes according to the will of the president
and Congress, who behave unpredictably; therefore, it will be impossible to
understand what generates annual public deficits, which give rise to the net
federal debt.
B. The net U.S. federal debt to GDP ratio follows a pattern that cannot have a
meaningful interpretation.
C. As a result of the exceptionally large increases in U.S. government military
expenditures in the first half of the 1940's, that were needed to win World
War II, the net U.S. public debt to GDP ratio increased substantially,
surpassing 100%. Since the late 1950's however, U.S. net federal debt to
GDP ratio has fluctuated within a relatively small bend around the 40% line.
D. The U.S. net federal debt to GDP ratio has been, for the most part,
decreasing since the end of World War II, despite the fact that the U.S.
economy was expanding and could afford a larger debt to GDP ratio.