Which one of the following statements is accurate?

Question

Quizplus · Accepted Answer

Budget deficits are the difference between government spending and revenue in a given fiscal year, while the national debt is the total amount of money owed by the government at a given time. Budget deficits can contribute to the national debt if they are financed by borrowing, but borrowing money over time does not necessarily reduce the national debt. Option A is incorrect because budget deficits may vary from year to year and are not necessarily cumulative. Option C is incorrect because the national debt is not limited to a specific fiscal year. Option D is incorrect because borrowing money over time can increase the national debt if interest is paid on the borrowed amount.

Which One of the Following Statements Is Accurate