I would need help with this question from a mock test.

The picture below depicts the following UK indicators covering the period 1920-2015: . The upper blue line is the Public sector debt measured on the right scale as a percentage of GDP The purple line marked by circles is the (smoothed) value of the public sector deficit (i.e., G>7), measured on the left scale, also as a percentage of GDP The solid red line is the difference between the Central Bank's policy rate and the rate of growth of nominal GDP, measured on the left scale 300 is Bank rate -250 g is the growth rate of nominal GOP 200 150 Debt 100 GDP .50 Deficit GDP 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Bank Rate Minus NGDP Growth Rate (Smoothed) Public Sector Net Debt Public Sector Net Borrowing (Smoothed) Which of the following statements is true Select one correct answer O The National debt contracted during the WWill was paid off thanks to large budget surpluses (T > G) O The level of the National Debt has been decreasing between WWil and the 1990s O A surplus of public sector borrowing (TG) is necessary and sufficient to reduce government debt when debt is measured as a fraction of the GDP O On average and over the period 1930-1990, the public sector was borrowing (G) 1) while the national debt measured as percentage of GDP was falling