If the government were to experience a budget deficit in the next three years, the government's total debt would:

Question

Quizplus · Accepted Answer

If the government experiences a budget deficit, it means that it is spending more money than it is collecting in revenue. To make up for the shortfall, the government would need to borrow money by issuing bonds or other forms of debt. This would increase the government's total debt, since it would owe more money to lenders. Over time, the interest payments on this debt can add up and further increase the government's total debt. Therefore, if the government experiences a budget deficit in the next three years, its total debt would likely increase over that same period.

If the Government Were to Experience a Budget Deficit in the Next