If the government has a balanced budget, the total amount of government debt is
A) increasing.
B) decreasing.
C) constant.
D) zero.

Name: If the government has a balanced budget, the total amount of government debt is A) increasing. B) decreasing. C) constant. D) zero.
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Question

Quizplus · Accepted Answer

A balanced budget means the government's spending equals its revenue, so it neither borrows more nor repays debt, keeping the total amount of debt constant.

If the Government Has a Balanced Budget, the Total Amount