Causes of Rising Debt
Government spending that is higher than revenue creates this.
Deficit
The ______ War greatly increased U.S. national debt in the 1860s.
Civil
This country currently has one of the highest total national debts in the world.
United States
If debt keeps growing, future generations may pay higher ______.
Taxes
This term describes the total amount of money a country owes.
Debt
When the government lowers this, it often collects less money.
Taxes
World War ______ caused a major rise in U.S. debt in the 1940s
Two
Debt compared to a country’s economy is called debt-to-_____.
GDP
Large debt can lead to rising ______ rates.
Interest
When spending is greater than revenue in one year, it is called a budget ______.
Deficit
Programs like Social Security and Medicare are called government ______.
Entitlements
The wars in Iraq and Afghanistan are part of the War on ______.
Terror
This European country faced a major debt crisis in 2010.
Greece
Cutting government spending is called budget ______.
Cuts
Debt divided by a country’s GDP is called the debt-to-______ ratio.
GDP
Borrowing money requires paying this extra cost over time.
Interest
Countries often sell government ______ to pay for wars.
Bonds
Countries that share the euro are part of the European ______.
Union
When prices rise quickly, it is called ______.
Inflation
The U.S. national debt is measured in this large unit of money.
Trillions
When the economy slows down, this decreases and debt may rise.
Revenue
Military spending is part of the national ______ budget.
Defense
The International Monetary ______ helps countries in financial trouble.
Fund
Creating a long-term plan to control debt is called fiscal ______.
Responsibility
The legal limit Congress sets on how much the U.S. can borrow is called the debt ______.
Ceiling