Which of the following would reduce the level of the net debt of the federal government?
A) Cut expenditure and raise revenue to reduce the deficit from $400 billion to $100 billion.
B) Balance the federal budget.
C) Run an annual surplus.
D) All of the above.

Question

Quizplus · Accepted Answer

Running an annual surplus would directly reduce the net debt of the federal government, as it means the government is taking in more revenue than it is spending, allowing it to pay down existing debt.

Which of the Following Would Reduce the Level of the Net