If the budget deﬁcit becomes smaller, then it will cause the public debt to also become smaller.

Name: If the budget deﬁcit becomes smaller, then it will cause the public debt to also become smaller.
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A smaller budget deficit means the government is borrowing less in a given period, but the public debt can still increase if the government continues to borrow more than it repays. The overall debt level can grow even with a reduced deficit.

If the Budget Deﬁcit Becomes Smaller, Then It Will Cause