Question

Take a look at the most recent years of data on the net public debt displayed in Figure 14-3, and then examine the most recent years of data on federal budget deficits shown in Figure 14-2. Why do you suppose that the net public debt as a percentage of GDP has grown more slowly recently than was the case between 2008 and 2015 ?

Short answer

The narrowing of the federal budget deficit after$2015$caused the net public debt as a percentage of GDP has grown more slowly

Step-by-step solution

introduction

A rise in the Federal Budget Deficit is an aftereffect of expanded government spending, import/export imbalance, neglected credit and lessening in the expense and non-charge incomes.

explanation

During a similar time, expansionary financial devices expanded total interest and the pace of expansion started to rise. The public authority's financial and money related drives drove the economy to the way of monetary adjustment. The obligation trouble along these lines started to pay off the obligation GDP proportion and hence the more slow development of the proportion in the new years.