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

Name: If the government has a balanced budget, the total amount of government debt is A) decreasing. B) increasing. C) constant. D) zero.
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Question

Quizplus · Accepted Answer

A balanced budget means that the government is not adding to its debt, but also not paying off any existing debt. Therefore, the total amount of government debt would remain constant.

If the Government Has a Balanced Budget, the Total Amount