Question

12. What is the expected future trend of the debt to GDP ratio? A) There are too many unknown variables to make a prediction B) Ratio will remain stable C) Ratio will decrease slightly D) Ratio will increase greatly

Answer 1

③) Expected Futune trend of the debt to Gop rafio: Will increase greatly. The big in crease in global debt over the past decade over $70 trillion has been driven mainly by government and the non finan. cial corporator sector for mature market, the rise has mainly been in general government debt (up & 17 trillion to oven & 52 trillion) japan has the highest debt to gde nativ. In long term, the united states Gross Federal debt to Gop is projected to trend ano and 107.90 percent in 2011 and 106:60 percent in Quara, according to our Economic model i future estimation) ده ) 6

2 gus government Spending on Social Security, defence , medicare and medicaid makes up approximately 63% of the gort spending *here is the Explanation : manda torey spending makes up nearly two third of the total Federal Budged social security alone comprises more than a third of mandatory spending and anound 23% of the total Fede. rad Budget. medicare make up and add ifion ail 23 % of mandatory spending.