The federal government debt ________ when the federal government runs a deficit and ________ when the federal government runs a surplus.

Question

Quizplus · Accepted Answer

When the federal government runs a deficit, it spends more money than it collects in taxes, resulting in an increase in the federal government debt. On the other hand, when the federal government runs a surplus, it collects more money than it spends, resulting in a decrease in the federal government debt. Therefore, the federal government debt increases when the government runs a deficit and decreases when it runs a surplus.

The Federal Government Debt ________ When the Federal Government Runs