Asked by
Anna-Brooke Taylor
on Nov 30, 2024Verified
Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 150 and in year 2 from 150 to 50.During these two years the national debt will
A) fall by 200.
B) fall by 50.
C) rise by 50.
D) rise by 150.
E) rise by 200.
Federal Budget Deficit
The financial situation in which the federal government's expenditures exceed its revenues in a given fiscal year.
National Debt
The total amount of money that a country's government has borrowed.
- Understand the relationship between federal budget deficits/surpluses and the national debt.
Verified Answer
GS
Learning Objectives
- Understand the relationship between federal budget deficits/surpluses and the national debt.