Which of the following is true concerning the national debt?

Question

Quizplus · Accepted Answer

A budget surplus (when the government brings in more revenue than it spends) will reduce the national debt because it allows the government to pay off some of its outstanding debts. On the other hand, a budget deficit (when the government spends more than it brings in) adds to the national debt. Therefore, only option D is true. Option A is incorrect because, while the budget deficit contributes to the national debt, they are not equal. Option B is incorrect because a declining budget deficit means that the government is still incurring debt, just at a slower pace. Option C is incorrect because a budget deficit adds to the national debt, rather than reducing it.

Which of the Following Is True Concerning the National Debt