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U.S. Government Debt Quiz

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

As of Q4 2023, what was the debt-to-GDP ratio of the U.S. government?

a)

100%

b)

121.6%

c)

135%

d)

150%

2.

What primarily causes the U.S. national debt to rise?

a)

Decrease in government spending

b)

Increase in tax collections

c)

Spending exceeds tax collections

d)

Export exceeds import

3.

Which event caused the U.S. debt-to-GDP ratio to rise to 135% by mid-2020?

a)

The American Revolution

b)

The Great Recession

c)

The COVID-19 pandemic

d)

Tax cuts in the 1990s

4.

What was the U.S. national debt as of April 1, 2024?

a)

$34.63 billion

b)

$34.63 trillion

c)

$34.63 million

d)

$34.63 thousand

5.

According to the Congressional Budget Office (CBO) projections, what will the net interest outlays of the United States be in FY 2033?

a)

A) $10.5 trillion

b)

B) $1.4 trillion

c)

C) $1.9% of GDP

d)

D) 3.6% of GDP

6.

What rating did Fitch Ratings assign to the United States' Long-Term Foreign-Currency Issuer Default Rating (IDR) on August 1, 2023?

a)

A) AA+

b)

B) AAA

c)

C) A

d)

D) BBB

7.

What economic effect is described by the "paradox of thrift"?

a)

A) Increased individual savings lead to decreased economic growth

b)

B) Increased government spending leads to higher taxes

c)

C) Decreased individual savings lead to increased economic growth

d)

D) Increased individual savings lead to higher inflation

8.

What does the national debt of the United States include?

a)

A) Only Treasury bills

b)

B) Treasury bills, notes, bonds, TIPS, FRNs, Government Account Series, and other securities

c)

C) Only foreign loans and credits

d)

D) Only domestic public loans

9.

What is the primary claim of Modern Monetary Theory (MMT)?

a)

A) Governments rely solely on taxes for spending

b)

B) Governments should avoid printing money

c)

C) Governments do not need to rely on taxes or borrowing for spending

d)

D) Governments should limit their spending to avoid inflation

10.

As of 2022, which country had the highest level of national debt as a percentage of GDP according to OECD data?

a)

United States

b)

Italy

c)

Japan

d)

Greece

11.

What is the national debt level of the United States?

a)

The amount the government earns from taxes

b)

The total of all state debts

c)

What the federal government owes its creditors

d)

The sum of all personal debts in the U.S.

12.

What could cause the U.S. government's debt financing costs to increase dramatically by 2033?

a)

Decrease in national GDP

b)

Lowering of the debt ceiling

c)

Rising interest rates and mounting budget deficits

d)

Reduction in government spending

13.

What is a politically charged issue related to the U.S. national debt?

a)

Tax reforms

b)

Debt ceiling

c)

Education funding

d)

Healthcare policies