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

Question

Quizplus · Accepted Answer

When the government runs a deficit, it means they are spending more money than they are taking in through taxes and other sources of revenue. This results in the government borrowing money to cover the shortfall, which increases the overall amount of government debt. Therefore, the correct answer is D - increasing.

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