After a devastating hurricane hits the Gulf Coast of Florida, Congress authorizes $50 billion in emergency spending to help families rebuild. Assuming the government already spends more than it makes in revenue, this plan will:

Question

Quizplus · Accepted Answer

The plan will increase both the debt and the deficit by $50 billion each. The deficit increases because it's the difference between what the government spends and what it earns, and the debt increases because it's the accumulation of deficits over time.

After a Devastating Hurricane Hits the Gulf Coast of Florida