Asked by

Anna-Brooke Taylor
on Nov 30, 2024

verifed

Verified

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.
verifed

Verified Answer

GS
Gurpreet SinghDec 04, 2024
Final Answer:
Get Full Answer