The national debt is the
A)result of previous budget deficits.
B)result of rising interest rates.
C)result of previous budget surpluses.
D)result of efficient balancing.

Question

Quizplus · Accepted Answer

The national debt is the result of previous budget deficits, which are the amount by which government spending exceeds revenue in a given year. When the government spends more than it takes in through revenue sources such as taxes, it must borrow money to meet its obligations, resulting in an increase in the national debt. Rising interest rates can contribute to the increasing cost of servicing the national debt, but they are not the primary cause of the debt itself. The national debt is not the result of previous budget surpluses or efficient balancing, as these would result in a reduction of the national debt.

The National Debt Is the