If the federal government were to run a budget surplus, this would
A) increase the size of the national debt.
B) reduce the size of the national debt.
C) leave the size of the national debt unchanged.
D) decrease the national debt only if the government also reduces the supply of money.

Question

Quizplus · Accepted Answer

If the federal government were to run a budget surplus, it would mean that its revenues exceed its expenditures, resulting in a decrease in the national debt. A budget surplus would allow the government to pay off some of the outstanding debt, reducing the overall size of the national debt.

If the Federal Government Were to Run a Budget Surplus