After running the numbers on a new Green Job plan, the CBO projects that the government _______ will increase by $40 billion each year, and _______ will increase $400 billion over the project's lifespan.
A) debt; the deficit
B) debt; transfer payments
C) deficit; debt
D) deficit; transfer payments

Question

Quizplus · Accepted Answer

The correct answer is C) deficit; debt. The deficit refers to the annual difference between government spending and revenue, while the debt is the total amount owed over time. If the government's deficit increases by $40 billion each year, it means they are spending more than they are earning annually. The increase in debt by $400 billion over the project's lifespan indicates the accumulation of these deficits over time.

After Running the Numbers on a New Green Job Plan