If the government runs a surplus, the total amount of government debt is
A) constant.
B) decreasing.
C) zero.
D) increasing.

Question

Quizplus · Accepted Answer

When the government runs a surplus, it means that it is collecting more revenue than it is spending. This results in a decrease in the total amount of government debt, as the government can use the surplus to pay off some of its outstanding debt. Therefore, option B is the correct choice.

If the Government Runs a Surplus, the Total Amount of Government