The national debt
A) will be zero when the federal budget is balanced.
B) has been shrinking in the last 30 years.
C) is equal to the government's budget deficit.
D) can grow without negative economic effects.
E) is a flow measure while the deficit is a stock measure.

Question

Quizplus · Accepted Answer

The national debt can grow without immediate negative economic effects, as governments can manage debt through various fiscal and monetary policies. However, long-term excessive debt can lead to economic challenges.

The National Debt